Business, 02.08.2021 18:30 brodysalander007
Effective controls relevant to the economy and efficiency of purchases will result in proper evaluation of the time for ordering merchandise. When making this evaluation, the purchasing company should give primary consideration to the
A. Price differences that exist among various vendors who can supply the merchandise at the required time.
B. Borrowing cost of money (interest) that the company must incur as a consequence of acquiring the merchandise.
C. Trade-off between the cost of owning and storing excess merchandise and the risk of loss by not having merchandise on hand.
D. Flow of funds within the company that indicates when money is available to pay for merchandise.
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