Purchasing Efficiency Impact on Inventory Valuation and Company's performance

Inventory constitutes a significant asset on the balance sheet of trading & manufacturing companies. Purchasing strategy and function affect the level of inventory and business performance of company to great extent. Effectively measuring and managing inventory is essential for keeping companies financial statements up to date and presenting true & fair view of financial statement. This paper established that the purchasing function contributes to level of inventory, cost of product and thereby on business performance. This Article links business and inventory performance to purchasing efficiency.