Purchasing

What is the process of buying called?

• Purchasing

• Selling

• Manufacturing

• Transporting

Which of the following departments does purchasing require input from?

• Marketing

• Engineering

• Manufacturing

• All of the above

Purchasing requires input from which of the following? Fill in the blank: Marketing, Engineering, Manufacturing, and ________.

• Manufacturing planning and control

• Sales department

• Customer service

• Quality assurance

Manufacturing planning and control helps determine what materials to order.

• True

• False

Manufacturing planning and control helps determine when to order materials.

• True

• False

On average, what percentage of sales revenue is used for purchasing raw materials, components, and supplies?

• 10%

• 25%

• 50%

• 75%

List three items that, on average, 50% of sales revenue is used for.

• Raw materials, Components, Supplies

• Advertising, Rent, Utilities

• Salaries, Marketing, Insurance

• Office furniture, Travel expenses, Software licenses

There is tremendous potential to increase profits through purchasing and profit leverage.

• True

• False

• $90

• $40

• $50

• $100

• $10

• $90

• $100

• $0