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andrezito [222]
3 years ago
12

PLEASE HELP ASAP! What is the impact of effective purchasing on an operation’s cash flow?

Business
1 answer:
victus00 [196]3 years ago
3 0

<u>Answer:</u>

<u>Cost reduction; leading to profit for the company/business.</u>

<u>Explanation:</u>

Remember, a cash flow is an indication or indicator of the amount of money coming into and out of a business.

Thus, effective purchasing Implies buying the right items needed for operations at <em>the right/fair price </em>so as to reduce the total cost of operations, which invariably leads to more Profit since there's reductions in costs.

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