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:

Compound Interest

Interest calculated on the initial principal of a deposit or loan, as well as on the accumulated interest of previous periods, leading to exponential growth of the amount over time.

Economic Resource

Assets, materials, and inputs used to produce goods and services, including labor, capital, land, and entrepreneurship.

Money

A medium of exchange that is widely accepted in transactions for goods and services and repayment of debts.

Uninsurable Risk

A risk that cannot be covered by an insurance policy due to its high probability of occurring or the inability to accurately price it.