If a Purchasing Agent Is Able to Negotiate a Price

question 44

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 price variance will be favourable.
• E) the effect on the direct materials efficiency variance will be unfavourable.

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Definitions:

Perceived Market

A market as it is understood or interpreted by individuals or groups, potentially differing from objective measurements.

User-Friendly Textbook

A textbook designed to be easily understood and accessible to users, typically incorporating clear explanations and engaging visuals.

Publisher Charges

Refers to the fees or costs imposed by publishing companies for the publication and distribution of content, such as books, articles, or software.

Willingness To Pay

The maximum amount an individual is prepared to spend for a good or service, reflecting the value they place on it.