An advantage of buying by performance or function over other specification methods is that it provides:. a. evidence that the buyer has given thought and careful study to the need and the ways in which it may be satisfied.
b. the opportunity for the potential supplier to establish how to make the most suitable product.
c. the potential for equitable competition by ensuring that the suppliers are quoting for exactly the same material or service.
d. a standard for measuring and checking materials as supplied.
e. an opportunity to purchase identical requirements from a number of different sources of supply.

Lipman auto parts, a family-owned auto parts store, began january with $10,300.00 in cash. management forecasts that collections from credit customers will be $11,400.00 in january and $14,800.00 in february. the store is scheduled to receive $5,000.00 in cash on a business note receivable in january. projected cash payments include inventory purchases ($13,000.00 in january and $13,600.00 in february) and operating expenses ($2,700.00 each month). lipman auto parts' bank requires a $10,000.00 minimum balance in the store's checking account. at the end of any month when the account balance dips below $10,000.00, the bank automatically extends credit to the store in multiples of $1,000.00. lipman auto parts borrows as little as possible and pays back loans in quarterly installments of $2,000.00, plus 4 percent interest on the entire unpaid principal. the first payment occurs three months after the loan.