A Purchasing Manager's Performance Is Best Evaluated Using Information Such

question 148

Multiple Choice

A purchasing manager's performance is best evaluated using information such as

• A) usage efficiency and direct materials price variance
• B) direct materials flexible-budget variance
• C) direct manufacturing labor flexible-budget variance
• D) price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance

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Definitions:

General Ledger

A comprehensive accounting record of all transactions that affect a company, summarized by account.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.