Which of the Following Statements About Purchasing by Small Service

question 267

Multiple Choice

Which of the following statements about purchasing by small service firms is NOT TRUE?

• A) Purchases by small service firms are often handled by whoever is in charge.
• B) Purchases by small service firms can add up and these smaller firms are now an important target market.
• C) Purchases by small service firms are usually handled by a person with full-time responsibility for purchasing.
• D) Small service firms may need much more help in buying than large corporations.
• E) Small service companies often rely on e-commerce for purchases.

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Definitions:

Direct Materials

The raw materials that are directly used in the manufacturing of a product, which can be easily traced to the finished product.

Conversion

The process of changing or converting resources or inputs into final products or outcomes.

Indirect Materials

Any materials needed to make a product that are not directly traced to the product.

Work In Process

Inventory that includes goods that are in the production process but are not yet completed.