Purchasing a Higher Quality of Materials Than Is Specified by the Standard

question 72

Multiple Choice

Purchasing a higher quality of materials than is specified by the standard will likely result in

• A)a favorable price variance.
• B)a favorable quantity variance.
• C)an unfavorable quantity variance.
• D)a favorable price variance and an unfavorable quantity variance.

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Definitions:

Meganational Companies

Companies that operate on a global scale, extending their products, operations, and marketing strategies across multiple countries.

Network Structure

A structure that organizes a company by groups that form to work on a project, and then dissolve once the project is complete.

Matrix Structure

A structure that organizes a company along multiple dimensions that may include geography, function, and division.

Transnational Organizations

Organizations that operate across multiple countries, transcending national borders, to achieve their objectives.