Which of the following variances is most likely the responsibility of the purchasing manager?
A)Material quantity variance
B)Labor efficiency variance
C)Material price variance
D)Overhead volume variance

Question

Quizplus · Accepted Answer

The material price variance is a measure of the difference between actual and expected material costs based on the actual quantity purchased and the actual price paid. The purchasing manager is in charge of buying the materials, so this variance is most likely their responsibility. The other variances listed are more related to production and operations.

Which of the Following Variances Is Most Likely the Responsibility