Which of the Following Is the Objective of Purchasing

question 184

Multiple Choice

Which of the following is the objective of purchasing?

• A) Routinely replenish the stock.
• B) Ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost.
• C) Select suppliers.
• D) Determine the facility's level of output.
• E) Control inventory and product quality.

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Definitions:

Small Stock Dividend

A dividend paid in the form of additional stock shares rather than cash, usually less than 20-25% of the existing shares.

Common Stock Dividends Distributable

An amount declared by a company’s board of directors to be distributed to common stockholders, recorded as a liability until paid.

Paid-in Capital

The amount of capital "paid in" by investors during common or preferred stock issuances, including the par value of the shares.

Stock Dividends

A distribution of a company's earnings to shareholders in the form of additional shares, rather than cash.