What process is occurring in the figure below? Describe that process.
Definitions:
Purchased Quantity (PQ)
The total amount of a specific item that a company acquires from suppliers within a given time period, used for inventory management and cost control.
Standard Price (SP)
A predetermined cost that companies use as a benchmark to evaluate actual performance or to plan future financial strategies.
Actual Price (AP)
The real price at which a transaction occurs, as opposed to an estimated or theoretical price.
Perfection Standards
Ideal or flawless benchmarks set for processes or products to ensure the highest quality level attainable.
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