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ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions

A furniture manufacturer wants to cut the money tied up in raw timber and parts held in its stores. Which business function is primarily responsible for managing the ordering, storage and movement of these materials?

Purchasing and inventory management within operations is responsible, because logistics covers ordering, storing and moving materials. Marketing concentrates on customers and promotion, and human resources on staffing, so neither manages raw material stock levels.

  1. APurchasing and inventory management within operationsCorrect
  2. BMarketing
  3. CHuman resource management

Explanation

Operations and logistics cover procurement, storage and movement of materials. Marketing deals with customer needs and promotion, and HR deals with people, so neither controls raw material inventory.

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