The two functional areas concerned with material flow are A. production and marketing B. manufacturing and purchasing C. marketing and finance D. manufacturing and finance E. None of the above

The correct answer is: B. manufacturing and purchasing

Manufacturing is the process of converting raw materials into finished goods. Purchasing is the process of acquiring the raw materials and other inputs needed for manufacturing. Both manufacturing and purchasing are essential for material flow, as they are responsible for the movement of materials from the supplier to the manufacturer and then to the customer.

Option A, production and marketing, is incorrect because production is responsible for the manufacturing of goods, while marketing is responsible for the promotion and sale of goods. Option C, marketing and finance, is incorrect because marketing is responsible for the promotion and sale of goods, while finance is responsible for the management of financial resources. Option D, manufacturing and finance, is incorrect because manufacturing is responsible for the manufacturing of goods, while finance is responsible for the management of financial resources. Option E, None of the above, is incorrect because both manufacturing and purchasing are essential for material flow.