Which one of the following statements about purchasing is true?
A) The cost of purchases as a percent of sales is often small.
B) Purchasing provides a major opportunity for price increases.
C) Purchasing is always more efficient than making an item.
D) Purchasing has an impact on the quality of the goods and services sold.
E) Competitive bidding is a major factor in long-term cost reductions.

Question

Quizplus · Accepted Answer

Purchasing has a significant impact on the quality of the goods and services sold because the quality and reliability of the supplies and materials purchased can affect the final product or service provided to customers. Option A is incorrect as the cost of purchases as a percent of sales can vary greatly depending on the industry and business. Option B is incorrect as purchasing actually provides opportunities for cost savings through negotiating lower prices. Option C is incorrect as there may be situations where making an item is more efficient than purchasing it. Option E is also incorrect as while competitive bidding can help reduce costs, it is not the only factor in achieving long-term cost reductions.

Which One of the Following Statements About Purchasing Is True