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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ANSWER:<br />
A B C<br />
Sales Income 2 000,00 2 000,00 2 000,00 2 000,00<br />
-Cost of Sales 1 500,00 1 462,50 1 425,00 1 350,00<br />
=Gross Profit 500,00 537,50 575,00 650,00<br />
-Operating Costs 300,00 300,00 300,00 300,00<br />
=Profit 200,00 237,50 275,00 350,00<br />
% Increase in Profit 0 % 18,75 % 37,5 % 75 %<br />
How did we get to a purchasing price of R1462-50 in case A?<br />
1. A 2.5% reduction in the price was negotiated.<br />
2. Thus, the price reduction is 2.5 /100 x 1500 = R37-50<br />
3. R1500-00 – R37-50 = R1462-50<br />
How did we get to a percentage increase of 18.75% in case A?<br />
1. Before the price reduction the Net Profit was R200-00<br />
2. After the price reduction the Net Profit is R237-50<br />
3. Thus R237-50 – R200-00 = R37-50<br />
4. R37-50/R200-00 x 100 = 18.75%<br />
3. SELECTING THE BEST SUPPLIER<br />
Students must be able to select the best supplier from a range of suppliers by setting<br />
criteria <strong>and</strong> using a decision matrix.<br />
The most general factors you would consider when selecting a supplier are:<br />
o The price of the goods<br />
[PRICE]<br />
o The quality of the goods<br />
[QUALITY]<br />
o Their ability to deliver the quantity you require [QUANTITY]<br />
o Their ability to deliver the goods when you want it [TIME]<br />
You might also consider other factors like …<br />
o Their reputation<br />
o Their BBBEE compliance<br />
o Their reliability etc<br />
4
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