Which department is often responsible for the direct materials price variance?

A) The accounting department.
B) The production department.
C) The purchasing department.
D) The finance department.
E) The budgeting department.

Question

Antonina Borisov · Accepted Answer

Final Answer : C, Explanation :  The purchasing department is typically responsible for acquiring the materials used in production, and therefore is in the best position to control the prices paid for those materials. As a result, the direct materials price variance is often attributed to the purchasing department.

Which department is often responsible for the direct materials price variance?

A) The accounting department.
B) The production department.
C) The purchasing department.
D) The finance department.
E) The budgeting department.

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Learning Objectives

Learning Objectives

Related questions

Which department is often responsible for the direct materials price variance?A) The accounting department.B) The production department.C) The purchasing department.D) The finance department.E) The budgeting department.

Definitions

Learning Objectives

Learning Objectives

Related questions

Which department is often responsible for the direct materials price variance?

A) The accounting department.
B) The production department.
C) The purchasing department.
D) The finance department.
E) The budgeting department.