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Commerce · Q362

Costing

Graduate and Post Graduate · Commerce · question 362

Q362

Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called

A.
economic order quantity purchasing
B.
annual purchasing
C.
just in time purchasing
Answer
D.
both a and b

Answer: Option C

Solution

Answer: Option C
Solution:
Buying of goods or materials for production in a way that they are delivered directly on manufacturing facility of company is called just in time purchasing. Just-in-time purchasing (JIT purchasing) is a cost accounting purchasing strategy. You purchase goods so that they're delivered just as they're needed to meet customer demand.