Which of the Following Is Not an Operational Level Purchasing

question 24

Multiple Choice

Which of the following is not an operational level purchasing decision? 

• A) The ordering process. 
• B) Major investment decisions. 
• C) All expediting activities related to released orders. 
• D) The monitoring and evaluation of supplier performance.

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Definitions:

Prime Costs

The combined direct costs of raw materials and labor that are directly attributable to the production of a product.

Conversion Costs

The sum of direct labor and overhead costs involved in converting raw materials into finished goods.

Electricity Costs

The expenses incurred for the consumption of electricity, often classified as a variable cost in production or operations.

Product Cost

The total cost incurred to create a product, typically including direct labor, materials, and overhead expenses.