Marcus Roberts Is Putting Together a Training Session About Value

question 84

Multiple Choice

Marcus Roberts is putting together a training session about value chain components. Which of the following would be a good example of a cost for the component of purchasing?

• A) Advertising
• B) Warranty repairs
• C) Vendor certification
• D) Patent applications

---

Definitions:

Price Variance

A measurement of the difference between the actual cost of a good or service and its expected cost.

Quantity Variance

The difference between the expected and actual quantities used or produced in a process.

Total Cost Variance

The difference between the actual cost and the standard cost of an operation, process, or product.

Direct Materials Price

The cost of raw materials and components required to produce a finished product.