If a manufacturer chooses to continue purchasing direct materials from a supplier because of the on-going relationship that has developed over the years, the decision is based on qualitative factors.

Question

Quizplus · Accepted Answer

The decision to continue purchasing direct materials from a supplier based on the on-going relationship is subjective and not quantifiable. Hence, it is based on qualitative factors.

If a Manufacturer Chooses to Continue Purchasing Direct Materials from a Supplier