A purchaser should pay attention to the cost of making an item instead of merely looking at the purchase price for several reasons. One of them is that the purchasing cost is a function of manufacturing. Therefore, production costs would help a purchaser to make informed decisions regarding how much to pay for a good. Secondly, understanding the manufacturing cost of an item offers insurance from fraud because some unscrupulous suppliers may want to exaggerate the price of a product or sell defective items to unsuspecting buyers. However, the above-mentioned principles are not true for all products. Particularly, goods or services that are supplied for humanitarian and social reasons are not subjected to the same rules. Nonetheless, understanding the cost of making products provides companies with valuable information about their purchases. In this regard, they become buyers that are more informed. This way, they can also transfer the same value to their customers.
Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?
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Academic.Tips. (2022) 'Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not'. 3 February.
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Academic.Tips. (2022, February 3). Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not? https://academic.tips/question/why-should-a-purchaser-evaluate-the-cost-of-making-an-item-instead-of-simply-evaluating-the-purchase-price-is-this-true-for-all-types-of-products-why-or-why-not/
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Academic.Tips. 2022. "Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?" February 3, 2022. https://academic.tips/question/why-should-a-purchaser-evaluate-the-cost-of-making-an-item-instead-of-simply-evaluating-the-purchase-price-is-this-true-for-all-types-of-products-why-or-why-not/.
1. Academic.Tips. "Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?" February 3, 2022. https://academic.tips/question/why-should-a-purchaser-evaluate-the-cost-of-making-an-item-instead-of-simply-evaluating-the-purchase-price-is-this-true-for-all-types-of-products-why-or-why-not/.
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Academic.Tips. "Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?" February 3, 2022. https://academic.tips/question/why-should-a-purchaser-evaluate-the-cost-of-making-an-item-instead-of-simply-evaluating-the-purchase-price-is-this-true-for-all-types-of-products-why-or-why-not/.
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"Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?" Academic.Tips, 3 Feb. 2022, academic.tips/question/why-should-a-purchaser-evaluate-the-cost-of-making-an-item-instead-of-simply-evaluating-the-purchase-price-is-this-true-for-all-types-of-products-why-or-why-not/.