Automating Procurement Activities Can Lead to Significant Cost Savings as Buyers

question 22

True/False

Automating procurement activities can lead to significant cost savings as buyers move toward managing processes by exception.

---

Definitions:

Cost of Production

The total expenses incurred in manufacturing a product or offering a service, including materials, labor, and overhead costs.

Finished Products

Goods that have completed the manufacturing process and are ready for sale.

Journal Entry

A record of financial transactions in the double-entry bookkeeping system that includes debits and credits.

Activity Bases

In cost accounting, refers to a measurable unit such as machine hours or labor hours that is used to assign costs to activities.