8-The profit-leverage effect of purchasing savings means that.. a- a reduction in money tied up in inventory improves profits b-a reduction in purchase spend increases profits more than an equal sales increase c-effective price negotiation with a supplier will reduce a supplier's profit d-the buyer gains leverage over suppliers as purchases are standardized
8-The profit-leverage effect of purchasing savings means that.. a- a reduction in money tied up in inventory improves profits b-a reduction in purchase spend increases profits more than an equal sales increase c-effective price negotiation with a supplier will reduce a supplier's profit d-the buyer gains leverage over suppliers as purchases are standardized
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Please help 8 &9

Transcribed Image Text:d
c-reducing annual spend
d-improving process efficiency
e-all of the above
8-The profit-leverage effect of purchasing savings means that..
a- a reduction in money tied up in inventory improves profits
b-a reduction in purchase spend increases profits more than an equal sales increase
c-effective price negotiation with a supplier will reduce a supplier's profit
d-the buyer gains leverage over suppliers as purchases are standardized
9-Partners that can help a firm conduct International Purchasing include all of these except...
a-Import Brokers
b-Stock Brokers
c-Trading Companies
d-Import Merchants
10. Using the Key steps of the Basic Purchasing Process, cite an example of an industrial purchase
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