ABSTRACT
Cost information also assists in determining: (1) the minimum order to be accepted; (2) the profitability of a particular product, territory, or customer; and (3) the method of servicing particular types of accounts (e.g., through jobbers, by telephone, or by mail order). In addition, cost information allows the purchasing manager to evaluate which suppliers are the least costly to use (i.e., the total cost associated with buying their merchandise, including any transportation charges). Cost information is also useful in planning and budgetary decisions. Your budgeted costs must be sufficient to meet your needs.
