Question

To manufacture protective cases and keep its operations running smoothly, Connie’s Case Creations makes purchases from a number of suppliers. Using the drop down menu, match the description of each purchase with the corresponding business-product classification.

Purchase of large-scale machinery to mold each case.
Purchase of cleaning fluids for maintaining manufacturing equipment.
Purchase of accounting services for tax preparation.
Purchase of bulk plastics to be molded into cases.
Purchase of multifunction laser printers for office use.
Purchase of leather straps to be fastened to finished cases.
Purchase of plastic glues to attach decorations to finished cases.

Answer 1

• Purchase of large-scale machinery to mold each case.- Major Equipment

Major equipment are large scale type assets.

• Purchase of cleaning fluids for maintaining manufacturing equipment - Supply

Supply goods are bought to enable the company maintain their equipment.

• Purchase of accounting services for tax preparation - Business Service

They are services purchased to maintain the business.

• Purchase of bulk plastics to be molded into cases - Raw Materials

These are the commodity goods that will be used to make finished products.

• Purchase of multifunction laser printers for office use - Accessory Equipment

Accessory equipment are light in nature but are still needed to help in the operations of the business.

• Purchase of leather straps to be fastened to finished cases - Component Part

• Purchase of plastic glues to attach decorations to finished cases - Process Material

These are products that will be used in the production process.