Which of the Following Is a Reason for a Favorable

question 159

Multiple Choice

Which of the following is a reason for a favorable material price variance?

• A) the purchasing manager bargaining effectively with suppliers
• B) the purchasing manager giving orders for small quantity to reduce storage cost
• C) the purchasing manager accepting a bid from the highest-priced supplier to ensure the quality of material
• D) the personnel manager hiring underskilled workers

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Definitions:

Saving Account

A type of bank account where money is deposited to earn interest over time.

Decimal Places

The tally of numbers present right of the decimal point in a given number.

Annual Interest Rate

The percentage rate charged or paid over a period of one year for a loan or investment.

Compounds Interest Continuously

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, assumed to be compounded infinitely often per period.