Which Type of Purchasing Do Organizations Use When They Are

question 66

Multiple Choice

Which type of purchasing do organizations use when they are experienced at buying the product, have an ongoing need for it, and have regular suppliers of it?

• A) Straight rebuy
• B) Modified purchase
• C) New task purchase
• D) Modified rebuy

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Definitions:

Work in Process Inventory

Items or goods that are partially completed in the production process but are not yet finished products.

Manufacturing Costs

The expenses involved in producing goods, including labor, materials, and overhead.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including direct materials, direct labor, and manufacturing overhead.

Income Summary Account

An account used in the closing process that summarizes the revenues and expenses of a period, ultimately transferring the net income or loss to retained earnings.