Direct vs Indirect SourcingMatch the following - i. High processing cost relative to the value of the transactionIi. Forms part of cost of goods soldiii. Any delay in sourcing will lead to a delay in production iv. Relatively low number of transactions1- Direct sourcing2-Indirect sourcing Direct Sourcing: i, iiiIndirect Sourcing: ii, ivDirect Sourcing ii, iii, ivIndirect sourcing i Direct sourcing i,ii, iv;Indirect sourcing iii
Question
Direct vs Indirect SourcingMatch the following - i. High processing cost relative to the value of the transactionIi. Forms part of cost of goods soldiii. Any delay in sourcing will lead to a delay in production iv. Relatively low number of transactions1- Direct sourcing2-Indirect sourcing Direct Sourcing: i, iiiIndirect Sourcing: ii, ivDirect Sourcing ii, iii, ivIndirect sourcing i Direct sourcing i,ii, iv;Indirect sourcing iii
Solution
The correct match would be:
Direct Sourcing: i, iii Indirect Sourcing: ii, iv
Explanation:
Direct Sourcing: i. High processing cost relative to the value of the transaction - This is often the case with direct sourcing as it involves dealing directly with the manufacturer or producer, which can involve high processing costs. iii. Any delay in sourcing will lead to a delay in production - This is
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