Purchases of goods and services based on long-term contracts best defines
A) direct materials.
B) consolidation.
C) spot buying.
D) strategic sourcing.

Question

Quizplus · Accepted Answer

Strategic sourcing involves making purchases of goods and services based on long-term contracts with suppliers, in order to ensure a steady supply of materials or services at the best possible cost. Direct materials are raw materials used in the production process, consolidation refers to merging two or more companies, and spot buying involves purchasing goods or services on an as-needed, one-time basis.

Purchases of Goods and Services Based on Long-Term Contracts Best