When analyzing direct materials price and quantity variances, the responsibility typically lies with
A)controller and CFO.
B)purchasing manager and production manager.
C)purchasing and cost accounting manager.
D)sales manager and production manager.

Question

Quizplus · Accepted Answer

The purchasing manager is responsible for negotiating the price of direct materials and ensuring that the quality of the materials received meets specifications. The production manager is responsible for using the materials efficiently and minimizing waste. Therefore, when analyzing direct materials price and quantity variances, the responsibility typically lies with the purchasing and production managers.

When Analyzing Direct Materials Price and Quantity Variances, the Responsibility