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Activity-based costing for purchasing managers' cost and pricing determinations.
INTRODUCTION
Progressive firms today consider their key suppliers as an extension of the firm's in-house production processes.[1] An ongoing supplier's performance typically is evaluated on the basis of product quality, delivered cost, and manufacturing and service capabilities. Even though the emphasis today has shifted toward quality, price is still an important criterion in most cases. In some cases a supplier becomes a single source for the buying organization. In these cases, in addition to its commitment to the basic performance criteria just mentioned, a supplier is frequently expected to participate in the buying firm's product development efforts to improve ...
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