The purchasing professional must understand the dynamic nature of ________ cost.

Question

Quizplus · Accepted Answer

Variable cost refers to cost that changes depending on the level of production or sales. As such, it is important for the purchasing professional to understand how variable cost affects the overall cost structure of the organization. This is particularly important for procurement decisions, as changes in the level of quantity purchased or the timing of purchases can have a significant impact on variable cost. Therefore, understanding the dynamic nature of variable cost is crucial for effective purchasing management.

The Purchasing Professional Must Understand the Dynamic Nature of ________