If a Purchasing Agent Is Able to Negotiate a Price

question 181

Multiple Choice

If a purchasing agent is able to negotiate a price lower than that set by the current budget by purchasing direct materials of similar quality

• A)a reduction in customer service costs will result.
• B)the effect on the direct materials efficiency variance will be favourable.
• C)the effect on the direct labour efficiency variance will be favourable.
• D)the effect on the purchase rate variance will be favourable.
• E)the effect on the direct materials efficiency variance will be unfavourable.

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Definitions:

Infusion Pump Rate

The speed at which fluids and medications are delivered to a patient through an infusion pump, usually measured in milliliters per hour (mL/hr).

Intravenous Infusion

The administration of liquid substances directly into a vein as a therapeutic treatment.

Potassium Chloride

A chemical compound used medically as a supplement or medication to treat and prevent low blood levels of potassium (hypokalemia).

Saline

A solution of salt in water, commonly used in medical treatments for hydration or wound cleaning.