Purchasing is a separate function in many organizations due to all of the following rationale except which?
A)It promotes efficiency and effectiveness.
B)It eliminates potential favoritism.
C)It reduces the opportunity for fraud.
D)It decentralizes control.

Question

Quizplus · Accepted Answer

Purchasing is a separate function in many organizations because it centralizes control rather than decentralizing it. By centralizing purchasing, organizations can standardize procurement processes, negotiate better prices with suppliers, and maintain greater control over expenses. Option A is correct as purchasing department helps in promoting efficiency and effectiveness. Option B is correct as a separate purchasing department ensures that purchases are made based on objective criteria and not personal relationships. Option C is correct as a separate purchasing department can implement controls to prevent fraud, waste, and abuse in the procurement process.

Purchasing Is a Separate Function in Many Organizations Due to All