The Procurement Manager Was Able to Bring Down the Cost

question 22

Multiple Choice

The procurement manager was able to bring down the cost of direct materials by purchasing materials of a slightly lower grade quality than the company had used previously.The lower grade of materials,however,meant a higher defect rate on the assembly line,and higher wastage of materials during production,which in turn lowered operating income.This situation would have led to a(n) ________.

• A)unfavorable direct materials cost variance
• B)favorable direct labor cost variance
• C)favorable direct labor efficiency variance
• D)unfavorable direct materials efficiency variance

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Definitions:

Need for Privacy

The individual desire for solitude and space where one can be free from public view or disturbance.

Communication in Organizations

The process by which information and meanings are transferred among the members of an organization to achieve mutual understanding.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives to achieve a desired objective.

Prospecting Letter

A Prospecting Letter is a type of business letter aimed at initiating a professional relationship, often used in sales or marketing to approach potential clients.