Which of the Following Is an Advantage of a Centralized

question 9

Multiple Choice

Which of the following is an advantage of a centralized purchasing department?:

• A)Quantity discounts
• B)More frequent shipments
• C)Closer contact between buyer and user
• D)Better knowledge of unit requirements

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Definitions:

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed manufacturing overhead - in the cost of a product.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold to customers.

Inventory

Materials and goods held by a business in the process of being sold or used in production processes.

Cost

The amount of money that needs to be spent to acquire, produce, complete, or maintain something.