When Using Management by Exception,the Purchasing Manager Should Be Questioned

question 149

Multiple Choice

When using management by exception,the purchasing manager should be questioned for which of the following variances?

• A) direct materials efficiency
• B) variable overhead efficiency
• C) direct materials cost
• D) direct labor efficiency

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Definitions:

Ration Coupons

Documents or digital vouchers that allow the holder to purchase a certain amount of a product, often used by governments in times of shortage to ensure equitable distribution.

Right to Purchase

The option or privilege given to an individual or entity to buy something at a predetermined price within a specific time frame.

Price System

The mechanism whereby the prices of goods and services are determined in a free market economy, primarily through the interaction of supply and demand.

Allocation of Resources

The process of distributing available resources among various uses in an economy to meet the needs and desires of individuals and entities.