The Purchasing Manager Was Able to Bring Down the Cost

question 103

Multiple Choice

The purchasing manager was able to bring down the cost of direct materials by purchasing direct materials of a slightly lower grade quality than the company had used previously.The lower grade of direct materials,however,meant a higher defect rate on the assembly line and higher wastage of direct materials during production,which in turn lowered operating income.This situation would lead to a(n) ________.

• A) favorable direct materials cost variance
• B) unfavorable direct labor cost variance
• C) favorable direct labor efficiency variance
• D) favorable direct materials efficiency variance

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Definitions:

Human Resource Management

The strategic approach to the effective management of people in an organization, so that they help the business gain a competitive advantage. It's designed to maximize employee performance in service of an employer's strategic objectives.

Motivating

The process of encouraging or inspiring individuals or groups towards achieving certain goals or desired behaviors.

Staffing

The process of hiring, positioning, and overseeing employees in an organization.

Informational Roles

Functions or tasks primarily focused on the collection, processing, and dissemination of information, often associated with managerial and leadership positions.