Which of the following best explains 'cost reductions'?
A) The variance between the historical and the actual purchase price paid per unit.
B) The volume per product item which is expected to be saved in the next planning period and the expected price level for that specific product.
C) The total purchasing budget savings.
D) The purchasing savings budget for each item.

Question

Which of the following best explains 'cost reductions'? 
A) The variance between the historical and the actual purchase price paid per unit. 
B) The volume per product item which is expected to be saved in the next planning period and the expected price level for that specific product. 
C) The total purchasing budget savings. 
D) The purchasing savings budget for each item.

Quizplus · Accepted Answer

Cost reductions refer to the expected savings in volume and price for a specific product in the next planning period.

Which of the Following Best Explains 'Cost Reductions