Question

Which of the following is not an objective of the purchasing process?

1) Inventory control
2) Fastest possible processing of payments to vendors
3) Maintaining vendor records
4) Forecasting cash outflows

Answer 1

The primary objective of the purchasing process is not the fastest possible processing of payments to vendors, but rather inventory control, maintaining vendor records, and forecasting cash outflows, focused on cost-efficiency and accuracy.

Step-by-step explanation:

The objective of the purchasing process includes various tasks such as inventory control, maintaining vendor records, and forecasting cash outflows. However, fastest possible processing of payments to vendors is not typically considered a primary objective of this process.

While prompt payment is important, the main goals are more centered around obtaining the best value for money, ensuring timely delivery of products and services, inventory management, and maintaining good supplier relationships.

The process is typically more concerned with accuracy and cost-efficiency rather than sheer speed of payment. Cash flow management does involve timing the payments, but it's more about ensuring liquidity and maintaining a good credit rating rather than just speed.