ACCA Applied Knowledge · Business and Technology · The relationship between accounting and other business functions
Which of the following is the main objective of the purchasing function in a business?
The main objective of purchasing is to obtain the right goods and services in the right quality and quantity, at the right time and price, from a suitable supplier. Despatching goods and preparing financial statements belong to other functions.
- ATo obtain goods and services of the right quality, in the right quantity, at the right time and at the right priceCorrect
- BTo arrange the despatch of finished goods to customers
- CTo prepare the financial statements of the business for external users
Explanation
Purchasing aims to secure inputs of the right quality, quantity, time and price (and from the right source). Despatching goods is a distribution or logistics activity, and preparing financial statements is an accounting task.
Did you get it right without looking?
One question tells you little. A timed set on The relationship between accounting and other business functions shows your real accuracy, how long you take and where you lose marks.
More The relationship between accounting and other business functions questions
- Kestrel Ltd's production manager asks for a new component. The purchasing department obtains quotes, issues an order to the chosen supplier,…
- The finance team at Marlow Co is asked by the sales director to report revenue early to hit a bonus target, even though the goods have not b…
- A manufacturer adopts a just-in-time (JIT) approach to production. Which outcome is the most likely effect on the accounting function's work…
- Which of the following is the most accurate description of the main purpose of the finance function within a business?
- A manufacturing company's payroll department has calculated the monthly wages for all employees. Before the payments are made, the finance f…
- A company's sales team is paid commission on orders taken, regardless of whether customers pay. The finance director is concerned about risi…