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

Question

Quizplus · Accepted Answer

Direct materials price variance is important to evaluate purchasing manager's performance, as it reflects their effectiveness in negotiating prices. However, in addition to this, it is important to also evaluate their achievement of quality goals and effectiveness in terms bargaining. These factors provide a more comprehensive evaluation of the purchasing manager's performance. The other options (A, B, and C) are only focusing on specific aspects such as usage efficiency and budget variances, rather than a holistic evaluation of the purchasing manager's performance.

A Purchasing Manager's Performance Is Best Evaluated Using Information Such