Answer:
The direct materials cost variance is $25,900 unfavorable
Explanation:
The formula to compute the direct materials cost variance is shown below:
Direct material cost variance = Standard cost - Actual cost
where,
Standard cost = Number of pounds used for direct material × direct material pound per unit
= 7,000 pounds × $11
= $77,000
And, the actual total material cost is $102,900
Now put these values to the above formula
So, the value would equal to
= $77,000 - $102,900
= $25,900 unfavorable
The <u>deciders </u>have the formal or informal power to select or approve the suppliers that receive the contract in a buying center.
<h3>What are buying centers?</h3>
A buying center is a jointed decision-making group that gathers individuals of an enterprise who engage or involve in the purchasing process for a certain product or a service.
A buying center is the collection of employees or members of any form of organization that are in charge of making big purchases.
Members of the buying center include
- Buyers
- Decider
- User
- Initiator
- Influencer
- Gatekeeper
Here, the <u>decider </u>has the formal or informal power to select or approve the suppliers that receive the contract in a buying center.
Learn more about buying center here:
brainly.com/question/8947097
Answer:
D. encourages process-value analysis.
Explanation:
Activity based costing aims to allocate cost of different processes and activities to the department which utilizes the cost at maximum, on the basis of actual cost drivers.
Every activity has a cost driver, as for example for the expense or activity of rent is based on area allocated to each department thus cost driver here is area of the department.
Therefore, Activity based Costing encourages the process value analysis, which process is best.
It states which process added how much value to each product or department, it is a kind of process analysis.
Thus, correct option is D
