In a Buying Center, Purchasing Agents or Purchasing Managers Are

question 178

Multiple Choice

In a buying center, purchasing agents or purchasing managers are also known as

• A) gatekeepers.
• B) deciders.
• C) buyers.
• D) users.
• E) influencers.

Recognize the responsibilities of different departments (e.g., purchasing, production) in managing costs and variances.

Apply budget variance analysis to sales and operating income to support planning and control purposes.

Master management by exception and its application in focusing on significant variances for managerial action.

Understand the concepts of direct material and direct labor variances including rate, efficiency, and quantity variances.

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Definitions:

Fixed Factors

Inputs in production that cannot be altered in the short term, such as buildings and machinery.

Output

The amount of goods and services produced by a business, industry, or economy.

Marginal Cost

The cost added by producing one additional unit of a product or service, important for decision-making in resource allocation.

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes all fixed and variable costs.