The _____ is held responsible for an unfavorable quantity variance caused by low-quality direct materials.
A) sales department
B) investment department
C) purchasing department
D) operating department

Question

Quizplus · Accepted Answer

The purchasing department is responsible for selecting and acquiring the direct materials used in production. If low-quality materials are purchased, it can result in an unfavorable quantity variance for the operating department responsible for production. The sales department is responsible for generating revenue through the sale of products, the investment department manages financial investments, and the operating department produces the goods or services. None of these departments are directly responsible for selecting or acquiring the materials used in production.

The _____ Is Held Responsible for an Unfavorable Quantity Variance