Which of the following is not a potential consequence of category sourcing?
A) Material cost savings.
B) Increased profits.
C) Reduction of working capital.
D) Reduction of transaction costs.

Question

Which of the following is not a potential consequence of category sourcing? 
A) Material cost savings. 
B) Increased profits. 
C) Reduction of working capital. 
D) Reduction of transaction costs.

Quizplus · Accepted Answer

Increased profits are not a direct consequence of category sourcing. Category sourcing primarily focuses on procurement and supply chain efficiencies, such as material cost savings, reduction of working capital, and reduction of transaction costs. While these can indirectly lead to increased profits through cost savings, increased profits themselves are more broadly influenced by a range of factors beyond just category sourcing practices.

Which of the Following Is Not a Potential Consequence of Category