Answer: e. a and b above
Explanation:
Vendors are those that a company buys goods from for sale. These goods are usually bought in bulk at wholesale prices then sold at a mark-up.
In such a situation it would very important to know the cost that the Vendors incur as it would enable the purchasing agent to estimate a price that they believe will be fair to both parties in that it would ensure adequate profit for the vendor as well as a cheaper price for the buyer.
Upon estimating this price, the purchasing agent will then be able to negotiate this price or any other price deemed to be fair.
