Question

A company can save costs by allowing the Purchasing Department to make procurement decisions without involving the Stores Department.

Options

• True

• False

Answer 1

False

Explanation:

• Allowing the Purchasing Department to make procurement decisions without involving the Stores Department can lead to overstocking, understocking, or mismanagement of inventory, which may increase costs rather than save them.
• Effective coordination between Purchasing and Stores Departments ensures optimal inventory levels and cost efficiency.