The Purchasing Function of Operations Management Seldom Uses the Internet

question 20

True/False

The purchasing function of operations management seldom uses the Internet to make purchasing decisions.

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Definitions:

Materials Price Variance

The difference between the actual cost of materials and the expected (standard) cost of materials used in production.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the expected quantity, which can affect costs.

Actual Price

The real price at which a transaction occurs, as opposed to an estimated or listed price.

Direct Materials

Raw materials that can be directly traced to the production of specific goods or services, reflecting in the cost of goods sold.