Which of the following statements is true? The production manager is most often responsible for the materials quantity variance. Material quantity variances are generally the responsibility of the purchasing department. Material quantity variances are always unfavorable and can never be favorable. A direct material quantity variance is not impacted by waste.

Question

Haylie Riley

Business

2 January, 10:55

Which of the following statements is true? The production manager is most often responsible for the materials quantity variance. Material quantity variances are generally the responsibility of the purchasing department. Material quantity variances are always unfavorable and can never be favorable. A direct material quantity variance is not impacted by waste.

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Answers (1)

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Mac · Answer 1

Option A and b

A The production manager is most often responsible for the materials quantity variance.

B Material quantity variances are generally the responsibility of the purchasing department.

Explanation:

Statement A

The reason is that the production manager is responsible for the material quantity variance because his job is to meet production required and efficiently doing that job. This is mostly in the case the production manager is held responsible for the material quantity variances.

Statement B

Furthermore the purchasing department is responsible for the purchasing of the material in the right quantity at a right price and of the right quality because less in quantity purchased will lower the production, higher in price will increase the material price variance and the poor quality material will increase the wastage and lower sales. So this means that the material quantity variance might be because of poor quality material which has higher wastage and hence higher the unfavorable variances are accounted for. So the purchasing department are responsible for number of variances.