Question

hich of the following is a supplier cost? 1) Inwards inspection. 2) Outwards inspection. 3) Expediting...

hich of the following is a supplier cost?
1) Inwards inspection.
2) Outwards inspection.
3) Expediting raw material deliveries.

a.

1 and 2.

b.

1 and 3.

c.

2 and 3.

d.

1, 2 and 3.

e.

None of the given answers.

Homework Answers

Answer #1

The answer is (b) - 1 & 3

Inwards Inspection - A supplier has to pay for materials/labor and responsible to provide you goods/services in agreed shape. Thus, any inward inspection charges are borne by supplier and they are part of supplier cost.

Outward Inspection - Outward inspection is not part of supplier cost as supplier is responsible to provide you goods/services in agreed shape so any outward inspection will not be part of supplier cost

Expediating Raw material - this is included in supplier cost

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