The investigation of materials price variance usually begins in the
A) first production department.
B) purchasing department.
C) controller's office.
D) accounts payable department.

Question

Quizplus · Accepted Answer

The purchasing department is responsible for procuring materials and negotiating purchase prices. Therefore, the investigation of materials price variance would typically begin in the purchasing department, as they are the ones who have the most direct influence over the cost of materials.

The Investigation of Materials Price Variance Usually Begins in the