A Request for Information (RFI)signals That the Buyer Has Identified

question 22

True/False

A request for information (RFI)signals that the buyer has identified the supplier as the source of supply and represents a commitment for future business.

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Definitions:

Fixed Factory Overhead Volume Variance

The difference between the budgeted amount for fixed factory overhead and the amount applied to production, based on standard cost.

Direct Materials Quantity Variance

A financial measure that shows the difference between the actual quantity of materials used and the standard quantity expected for production.

Standard Price

The predetermined cost that a company expects to pay for inventory or inputs, used for budgeting and variance analysis.

Variable Factory Overhead

Costs that fluctuate with production volume, such as utilities and materials used in the manufacturing process.