Which of the Following Is a Reason for Evaluating Purchasing

question 52

Multiple Choice

Which of the following is a reason for evaluating purchasing performance regularly? 

• A) To rate the individual buyer. 
• B) To lower material prices. 
• C) Fewer rejects of incoming goods. 
• D) Better sourcing decisions.

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Definitions:

Work in Process Inventory

Goods that are in various stages of the production process but are not yet complete.

Factory Overhead

Indirect costs associated with manufacturing, such as rent, utilities, and salaries of supervisors, that cannot be directly traced back to a specific product.

Direct Materials

Components and materials that are directly incorporated into a finished product and are a significant portion of manufacturing costs.

Direct Labor

The wages and related expenses for workers directly involved in the production of goods or the delivery of services.