The Contract Management Benefit Which Lets an Organization See If

question 4

Multiple Choice

The contract management benefit which lets an organization see if it is purchasing at the right times, quantities, and prices, and if those purchases are standardized with consistent contract terms and conditions is:

• A) Improved compliance management.
• B) Expenditure visibility.
• C) Enhanced spending and performance analysis.
• D) Evergreen contract elimination.

---

Definitions:

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.

Quantity Variances

The difference between the expected and actual amount of materials or resources used in a production process, often in reference to budgeting and cost control.

Direct Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, often analyzed to manage and control production costs.