COST ACCOUNTING
INVENTORY AND PRODUCTION MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Selecting the cheapest, lowest quality goods you can find.
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Selecting the appropriate quality goods that match your needs.
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Selecting the most expensive, highest quality goods.
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None of the above
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Detailed explanation-1: -Purchase management is the process of procuring items from external suppliers. It’s the management of purchasing, receiving, reviewing and approving purchase orders. Purchase management also includes managing the relationship with the supplier.
Detailed explanation-2: -Purchasing roles in an organization include; To ensure that materials of the right quality, in the right quality, from the right source/supplies at the right price, at the right time and at the right place.
Detailed explanation-3: -Procurement includes sourcing, obtaining and paying for goods and services. Supply chain management also covers the logistics involved in obtaining goods, such as shipping and warehouse management, as well as transforming the procured goods into products and distributing them to customers.