Which of the Following Could Be a Consequence of Competence

question 9

Multiple Choice

Which of the following could be a consequence of competence problems and friction between the buyer and other departments? 

• A) Outsourcing. 
• B) A lack of transparency in purchasing decisions. 
• C) Overspending on supplies. 
• D) Internal departments may prefer to deal directly with the supplier.

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Definitions:

Raw Material

Basic materials used in the production process, which are transformed into finished goods.

Property, Plant, and Equipment

Long-term assets, including land, buildings, machinery, and vehicles, used in the operation of a business.

Standard Cost Variances

The differences between the expected (standard) costs and the actual costs incurred for materials, labor, and overhead during a period.

Selling and Administrative Expenses

Overhead costs associated with the general operation of a company and the selling of goods or services, not directly tied to production.