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StormLrd StormLrd
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6 years ago
If a purchasing agent is able to negotiate a price lower than that set by the current budget by purchasing direct materials of similar quality
A) a reduction in customer service costs will result.
B) the effect on the direct materials efficiency variance will be favourable.
C) the effect on the direct labour efficiency variance will be favourable.
D) the effect on the purchase rate variance will be favourable.
E) the effect on the direct materials efficiency variance will be unfavourable.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
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MunihasenMunihasen
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6 years ago
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