One of the Most Important Objectives of the Purchasing Function

question 44

Multiple Choice

One of the most important objectives of the purchasing function involves the selection,development,and maintenance of supply and is sometimes described as ____.

• A) supply base management
• B) maverick spend
• C) customer service
• D) procure-to-pay
• E) backdoor buying

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Definitions:

Responsibility Centers

Organizational units within a company that are managed and evaluated separately, focusing on achieving specific financial and operational goals.

Transfer Prices

Prices assigned to transactions between related entities within a multinational corporation, often for accounting and tax purposes.

Decentralized Units

Separate divisions or departments within an organization that operate semi-autonomously, with their management responsible for certain decisions and operations.

Investment Centers

Segments or units within an organization for which the manager is responsible for generating revenue and controlling costs, often evaluated based on their return on investment.