The purchasing and production managers coordinate closely to prepare the materials usage budget because it requires both price and quantity estimates.

Question

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The purchasing manager is responsible for obtaining the necessary materials at the right price, while the production manager plans the production schedule and the amount of materials needed. Therefore, both managers must work together to prepare the materials usage budget, which includes estimating the quantity and price of materials required.

The Purchasing and Production Managers Coordinate Closely to Prepare the Materials