The purchasing function is only responsible for buying goods for the production function.

• True

• False

The economic principle is "Keep costs as low as possible to maximise profit!"

• True

• False

Assessing and selecting suppliers forms part of the purchasing cycle.

• True

• False

When looking for products, you should always look for the cheapest price.

• True

• False

Capacity refers to the ability of the supplier to supply the right goods at the right quantities.

• True

• False

Semi-finished goods are goods that have been extracted from the primary sector.

• True

• False

Capital goods refers to goods consumed in the business.

• True

• False

Economies of scale refers to the business benefiting due to the size of the operation.

• True

• False

Buying on credit improves the cash flow of the business.

• True

• False

JIT stands for ‘Just in time’.

• True

• False