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:

Hedging

A risk management strategy used to offset potential losses or gains in an investment by taking an opposite position in a related asset.

Price Changes

Variations in the cost of goods and services over time, influenced by factors such as inflation, supply, and demand.

Rate Changes

Adjustments in interest or exchange rates that impact the financial markets and economic conditions.

Zero Sum Game

A situation in which the gain of one party is exactly matched by the loss of another party, indicating that no net wealth is created or destroyed in the transaction.