Question

The purchasing function is one of the most value-enhancing functions in any organization, and therefore, it is not necessary to periodically monitor the purchasing function’s performance against a set of standards or industry benchmarks
A) True
B) False

Answer 1

The Purchase function should be periodically monitored, so the given statement is false.

Option B.

Explanation:

Purchasing, one of the strategic functions of a firm is the process of acquiring the inventories or raw materials that a company requires to operate on or manufacture the final products. Since it has direct impact on the cost of the production, the purchase that every concern makes has to be rational.

When it comes to monitoring, there must be a periodical measurement of the purchasing function or performance as this plays a significant role in the supply chain of the whole production process.