Question

A purchasing manager's performance is best evaluated using information such as:_______

a. price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance
b. direct materials flexible-budget variance
c. usage efficiency and direct materials price variance
d. direct manufacturing labor flexible-budget variance

Answer 1

A

Step-by-step explanation:

price and terms bargaining effectiveness, achievement of quality goals, and direct materials price variance

purchasing evaluation provides feedback to the purchasing department on the effectiveness of an organzations purchasing strategies and effectiveness. The obvious performance measure of the success of this department is the amount of money saved by the organization. Purchasing effectiveness can be assessed by reviewing inventory turnover ratio.

bargaining effectively with suppliers is a reason for favorable material price variance