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laasia baker
on Oct 23, 2024

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Which department typically is responsible for an unfavourable materials price variance?

A) Purchasing
B) Engineering
C) Production
D) Receiving

Materials Price Variance

The difference between the actual cost of materials and the standard cost, multiplied by the quantity of materials purchased, indicating cost management efficiency.

Purchasing Department

The division of a business responsible for acquiring goods, services, and materials necessary for the company’s operations.

  • Identify responsibility centers and analyze their performance through variance analysis.
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Spruce PresidenteOct 29, 2024
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