Which of the Following Best Explains 'Purchasing's Strategic Contribution

question 44

Multiple Choice

Which of the following best explains 'purchasing's strategic contribution'? 

• A) The extent to which, by choosing a certain course of action, a previously established goal or standard is met. 
• B) This refers to the relationship between planned and actual costs. 
• C) The savings made against budget allocation. 
• D) The building of superior relationships with best-in-class suppliers across the company's value chain.

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Definitions:

Perfectly Elastic Demand

Refers to a market situation where consumers are willing to purchase any quantity of the product at a certain price, but no quantity at any other price.

Very Elastic Demand

A situation where the quantity demanded of a product changes significantly due to changes in its price.

Perfectly Inelastic Demand

A situation where the demand for a product remains constant regardless of changes in its price.

Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with its demand either being elastic or inelastic.