Purchasing and Financing 2024
Purchasing- and Financial Management For 2nd year CATS learners. Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
Purchasing- and Financial Management
For 2nd year CATS learners.
Aligned to the outcomes of the German accredited certification: “Industrie Kaufmann/frau”.
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Question 6<br />
Study the graph below on MAKE or BUY decisions <strong>and</strong> answer the questions set.<br />
Costs<br />
(R)<br />
B<br />
D E A<br />
C<br />
Variable Costs of Production<br />
Fixed Costs of Production<br />
Quantity (units)<br />
Label lines A <strong>and</strong> B, point C <strong>and</strong> areas D <strong>and</strong> E. (5)<br />
Explain the relevance of point C (2)<br />
If point C is reached once 1500 units is manufactured, explain the implications for the<br />
company if sales was to decrease from 1650 units per annum to 1390 units. (3)<br />
Question 7<br />
Explain what is meant by the following terms (6)<br />
J.I.T purchasing (2)<br />
Re-order level (2)<br />
Optimal order quantity (2)<br />
Question 8<br />
Outline the purchasing routine followed in your company. (14)<br />
25
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