What Do Purchasing Agents Do

question 52

Essay

What do purchasing agents do?

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Definitions:

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost of those materials.

Standard Costs

Predetermined costs for materials, labor, and overhead used as benchmarks against actual production costs.

Gallons

A unit of volume measurement used primarily in the United States, equivalent to 3.785 liters.

Raw Materials Inventory

The total cost of all the raw materials that are currently held by a company in stock, awaiting to be used in production.