Author Question: Cost variances should be investigated ________. (Read 29 times)

Bernana · **on:** Mar 6, 2021

Question 1

A purchasing manager's performance is best evaluated using information such as
◦ usage efficiency and direct materials price variance
◦ direct materials flexible-budget variance
◦ direct manufacturing labor flexible-budget variance
◦ price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance

Question 2

Cost variances should be investigated ________.
◦ when they are considered within the "in-control" range as determined by management
◦ when the variance is more than a certain percentage of budgeted costs, as determined by management
◦ even though the cost of investigation exceeds the benefit as determined by management
◦ when the variance is less than a certain percentage of budgeted costs, as determined by management

Loise Hard · **Reply #1 on:** Mar 6, 2021

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