Organizing purchasing as a profit center means that the department would
A) manage expenses but not generate profits.
B) help other departments generate profits.
C) generate profits but not worry about expenses.
D) manage expenses and generate profit.

Question

Quizplus · Accepted Answer

Organizing purchasing as a profit center means that the department would be responsible for managing expenses and generating profit through their purchasing decisions. This involves seeking cost savings, negotiating favorable contracts and terms, and possibly even generating revenue through the sale of excess inventory or materials. By managing expenses and generating profit, the purchasing department can become a valuable contributor to the company's overall financial performance.

Organizing Purchasing as a Profit Center Means That the Department