Which of the Following Is an Objective of Purchasing

question 28

Multiple Choice

Which of the following is an objective of purchasing?
I. Obtain goods and services of the required specification and quality.
II. Obtain goods and services at the lowest cost.
III. Be sure the best possible service and delivery are provided by the supplier.

• A) I only
• B) II only
• C) III only
• D) IV only
• E) all are objectives of purchasing.

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Definitions:

Pocket Money

A small amount of money given to children by parents as an allowance or for completing tasks, which can be used for personal expenses.

MU y/ Pᵧ

The ratio of the marginal utility of good Y (MUy) to its price (Pᵧ), indicating the additional satisfaction per unit of currency spent.

Maximize Utility

The economic objective of consumers to achieve the highest level of satisfaction possible from their consumption decisions, given their income and the prices of goods and services.

Marginal Utility

The additional satisfaction or benefit that a consumer derives from consuming an additional unit of a good or service.