3. Columns 4 to 7 indicate, for each item, the purchase unit which is the size of the shipping container (ground beef comes in 10-pound bag), number of purchase units (there are six 10-pound bags in a purchase unit of ground beef), cost per unit (a 10-pound bag of ground beef costs $28.50-or $2.85 per pound), and total cost of the item (six 10-pound bags of ground beef at $28.50 equals $171).
Management challenge in Contracting
Challenges for public agencies
Loss of control
Reliance on contracting may put the government in a vulnerable position where essential services are concerned and lead to some loss of control over the services they purchase.
Excessive costs
Experienced service providers may have an information advantage over the government when new services are contract
purchased at the end of the accounting period remain in ending inventory. This cost flow assumption is usually follows the normal actual movement of goods.
-LIFO (last-in; first-out), Under LIFO the goods in inventory at the beginning of the period is assumed to remain in the ending inventory. LIFO requires significant record keeping and careful management of purchases. It also results in sign
purchasing aspect, Nokia completely controls the quality through rigorous suppliers selecting. All of Nokia mobile phone manufacturing bases in worldwide use of Nokia’s global purchasing system and CQTM, which is global organization for managing components quality and technologies so that they collectively manages quality of suppliers and their goods. In this way, Nokia controls the quality of
managers. But Nordstrom changed this practice. According to search, Up to 70% of Nordstrom's managers are women. They also purchased everything from manufacturer operated by women or minority. Nordstrom chosen for one of the 100 company giving best opportunities to Hispanic by 'Hispanic magazine'. In this respects, Nordstrom also come under 100 Business Company that American people prefer to work