A purchasing manager's performance is best evaluated using the ________.
A) direct materials price variance
B) direct materials flexible-budget variance
C) direct manufacturing labor flexible-budget variance
D) affect the manager's action has on total costs for the entire company

Question

Quizplus · Accepted Answer

The most appropriate measure of a purchasing manager's performance is the impact they have on total costs for the entire company. This involves considering the cost savings achieved through negotiations with suppliers, as well as the quality and timeliness of the materials purchased. The direct materials price variance and direct materials flexible-budget variance are more relevant to the performance of the production department, while the direct manufacturing labor flexible-budget variance is more relevant to the performance of the manufacturing department.

A Purchasing Manager's Performance Is Best Evaluated Using the ________