The Purchasing Agent of the Clampett Company Ordered Materials of Lower

question 3

Multiple Choice

The purchasing agent of the Clampett Company ordered materials of lower quality in an effort to economize on price and in response to the demands of the production manager due to a mistake in production scheduling. The materials were shipped by airfreight at a rate higher than ordinarily charged for shipment by truck, resulting in an unfavourable materials price variance. The lower quality material proved to be unsuitable on the production line and resulted in excessive waste. In this situation, who should be held responsible for the materials price and quantity variances.
$\begin{array}{lrr} \text { Materials Price Variance } &\text { Materials Quantiy Variance } &\\\end{array}$
A. $\begin{array}{ll}\text { Purchasing Agent } &&&& \text { Purchasing Agent } \\\end{array}$
B. $\begin{array}{ll}\text { Production Manager } &&& \text { Production Manager } \\\end{array}$
C. $\begin{array}{ll}\text { Production Manager } &&& \text { Purchasing Agent } \\\end{array}$
D. $\begin{array}{ll}\text { Purchasing Agent } &&&& \text { Production Manager }\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

Comprehend the equation of exchange and its components.

Identify the key concepts central to Keynesian economics, including investment determination.

Recognize the historical context and evolution of economic theories over time.

Understand the relationship between money supply, velocity of circulation, price level, and output.

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Definitions:

Joint Cavity

The space between the articulating surfaces of bones in a synovial joint, filled with synovial fluid that lubricates the joint.

Fibrous Joint

Bones connected by fibrous tissue with no joint cavity; includes sutures, syndesmoses, and gomphoses.

Synovial

Relating to or containing synovia (a substance that serves as a lubricant in a joint, tendon sheath, or bursa).

Cartilaginous

Describing a type of tissue that is not as hard as bone but provides flexibility and support; it is found in areas like the ears, nose, and joints.