CHAPTER 5
Q1: Define "direct materials" and "indirect materials". List reasons for a large company having two separate departments to manage the purchasing of each.
"Direct Material"
Direct material is the materials which can be easily identified with the unit of production.
For example : the direct material is Toyota which is origin country is from Japan.
"Indirect Material"
The material through the contact person which does not itself become a part of the product and whose cost in indirect.
For example, the of salesman of Toyota car agent in Brunei were order from Toyota Factory.
Most of companies have been improving the quality of their products by giving responsibility to a section of the product. It is made is to increase productivity and add value to attract customers and to increase company revenue and faster than a group.
Q2: In about 200 words, describe the reasons a buyer might have for wanting to participate in an industry consortium marketplace instead of setting up its own private company marketplace.
In business profit is paramount, whether small business or large. A company cannot by what they hope business where they are without any trade or aid from one company to another company such as consumption goods as stock runs out. If the stock exhausted, this means that stocks must be booked up for months on end to come and this will be a loss to the company. While there are many stocks of companies that will become a supplier to companies that are out of stock. Thus, there are companies for the purpose of stock can be prepared quickly and easily. While the profits will be distributed according to the percentage agreed in the agreement of their companies.
This business can be a bit more opportunity to spread their business even if the profit is less than usual but able to satisfy our customers. In business, to grow in a sustainable and advanced must be involved by all business partners.
In business profit is paramount, whether small business or large. A company cannot by what they hope business where they are without any trade or aid from one company to another company such as consumption goods as stock runs out. If the stock exhausted, this means that stocks must be booked up for months on end to come and this will be a loss to the company. While there are many stocks of companies that will become a supplier to companies that are out of stock. Thus, there are companies for the purpose of stock can be prepared quickly and easily. While the profits will be distributed according to the percentage agreed in the agreement of their companies.
This business can be a bit more opportunity to spread their business even if the profit is less than usual but able to satisfy our customers. In business, to grow in a sustainable and advanced must be involved by all business partners.
