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Internal transfers or external purchases

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Internal transfers or external purchases

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by AvatarJohn Moffat.
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  • October 24, 2018 at 9:20 pm #479696
    AvatarLily
    Member
    • Topics: 8
    • Replies: 12
    • ☆

    Hi I’m struggling to understand below sentence. Does it mean external purchases are preferred?

    Internal transfers should be preferred to external purchases because the company will have better control over output quality and the scheduling of production and deliveries.

    Thanks.

    Lily

    October 25, 2018 at 9:12 am #479751
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    No – it means that internal transfers are preferred (because then they will have better control etc..)

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