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:

UCS Preexposure Effect

The effect caused by exposure to the unconditioned stimulus (UCS) prior to conditioning; it impairs later conditioning when a conditioned stimulus (CS) is paired with that UCS.

New Food

Refers to any food product that has been recently developed, introduced, or becomes available for consumption, often involving innovative ingredients or preparation methods.

Flu

An infectious viral illness causing fever, muscle pain, sore throat, and cough, often leading to severe fatigue.

Backward Conditioning

A paradigm in which the unconditioned stimulus (UCS) is presented and terminated prior to the conditioned stimulus (CS).