Economics · Purchasing and Store Management
In a decentralized purchasing structure, a significant control risk that the organization must mitigate is:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1A lack of specialized expertise for negotiating complex category-specific contracts.
- 2Slower response times to local operational needs.
- 3Higher administrative overhead costs due to duplication of staff.
- 4The potential for inconsistent pricing and terms for the same material across different plant locations.✓
Correct answer
The potential for inconsistent pricing and terms for the same material across different plant locations.
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