Ask Question
BusinessBusiness
13 September, 16:25

Which department should usually be held responsible for an unfavorable materials price variance?

+3
Answers (2)
  1. 13 September, 16:53
    0
    Answer: Procurement Department

    Explanation:

    Unfavorable or Adverse Variance means that actual cost is greater than standard cost. For price the procurement department is responsible for purchasing on behalf of the firm, so they are charged with the responsibility of purchasing products with the least price without compromising quality.

    If they have purchased wrongly and they end up paying more that what was budgeted for then that's unfavorable.
  2. 13 September, 16:54
    0
    Available options are:

    A. Production.

    B. Materials Handling.

    C. Engineering.

    D. Purchasing.

    Answer:

    D. Purchasing

    Explanation:

    The reason is that the price variance is because of the fact that the purchasing department didn't assessed the market conditions and as a result lost a great opportuntity to purchase the material at low price. Their might be other factors which are as under:

    Didn't took any bulk discounts The price of material in the market was high Material was short in the market
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Which department should usually be held responsible for an unfavorable materials price variance? ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Leonard, inc., which uses a volume-based cost system, produces cat condos that sell for $126 each. direct materials cost $10 per unit, and direct labor costs $23 per unit. manufacturing overhead is applied at a rate of 175% of direct labor cost.
Answers (1)
Why did farmers who settled out west need new technologies?
Answers (1)
g You plan to deposit $1,700 per year for 5 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today.
Answers (1)
Albert just purchased a $1,000, 5.4%, 10minusyear bond when he heard about his friend Charlie who just bought a equal quality bond at $1,000; 9.5%, 10minusyear bond. What kind of risk did Albert just experience?
Answers (1)
Suppose someone believes that if a per-unit tax is placed on the producers of good Y, the consumers of good Y will end up paying the full tax. This person assumes that the demand curve for good Y is elastic.
Answers (1)
New Questions in Business
A nut store normally sells cashews for $4.00 per pound and peanuts for $1.50 per pound. But at the end of the month the peanuts had not sold well, so, in order to sell 40 pounds of peanuts, the manager decided to mix the 40 pounds of peanuts with
Answers (1)
The Bolen Company forecasts that total overhead for the current year will be $8,000,000 and that total machine hours will be 200,000 hours. Year to date, the actual overhead is $10,000,000 and the actual machine hours are 80,000 hours.
Answers (1)
Four trends in the past decade have significantly influenced the landscape of global marketing. one of them is
Answers (1)
Badger Corporation declared a stock distribution to all shareholders of record on March 25 of this year. Shareholders will receive one share of Badger stock for each 10 shares of stock they already own.
Answers (1)
Marketing ethics is most important for advertising agencies. maximizes an organization's positive impact on society. refers to principles and standards that define acceptable conduct in marketing. are laws and regulations that govern marketing.
Answers (2)
Home » Business » Which department should usually be held responsible for an unfavorable materials price variance?
Sign Up Forgot Password?