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:

Critical Life Event

A significant occurrence that has a profound impact on an individual's life and perspective.

Balanced Processing

Involves objectively analyzing and evaluating relevant information before making a decision, ensuring a fair and unbiased approach.

Optimism

The inclination to look at the more favorable side of events or conditions and to expect the most favorable outcome.

Positive Psychological Attribute

Characteristics or traits of an individual that are beneficial for their mental health and well-being, such as optimism, resilience, and self-efficacy.