If Each Division or Unit Is Responsible for Developing Its

question 5

True/False

If each division or unit is responsible for developing its own e-purchasing system or data gathering and part-numbering system, the result will be a mixture of compatible purchasing systems.

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Definitions:

Rate Variance

The difference between the actual rate paid for something and the standard or expected rate, often used in budgeting and cost management.

Time Variance

The variance between the real duration it takes to finish a task and the initially projected time for its completion.

Total Cost Variance

The difference between the actual costs incurred and the standard (or expected) costs for a given production or project period.

Purchase Price Variances

The difference between the actual cost of goods purchased and the standard cost, used to measure the efficiency of the purchasing function.