Purchasing materials in higher volumes has the advantage of reducing ______.
A)unit cost of material
B)costs associated with storing these materials
C)avoiding the possibility of having a surplus of finished products
D)price charged to customer

Question

Quizplus · Accepted Answer

Purchasing materials in higher volumes allows for negotiating better prices with suppliers, which ultimately reduces the unit cost of the material. It is also likely that purchasing larger quantities of materials would lead to an increase in storage costs rather than a decrease, and it is not directly related to avoiding a surplus of finished products or the price charged to the customer.

Purchasing Materials in Higher Volumes Has the Advantage of Reducing