_____ can be defined as the sum of all purchased goods and services that are not a direct part of products or services delivered to the customer.
A) Direct spend
B) MRO
C) Indirect spend
D) Consignment inventory
E) Kanban

Question

Quizplus · Accepted Answer

Indirect spend refers to all expenses related to running a business that are not directly related to producing or delivering products or services to customers. This typically includes items such as office supplies, maintenance and repair services, utilities, and travel expenses. Direct spend, on the other hand, refers to expenses that are directly tied to producing or delivering products or services, such as raw materials and labor costs. MRO (Maintenance, Repair, and Operations) and consignment inventory are types of indirect spend, while kanban is a lean manufacturing technique used to manage inventory and production processes.

_____ Can Be Defined as the Sum of All Purchased