Asked by Adrian Batista on Jun 15, 2024
Verified
In general, the production manager is responsible for the materials price variance.
Materials Price Variance
The difference between the actual cost of materials used and the standard cost, multiplied by the actual quantity of materials used.
Production Manager
An individual responsible for overseeing the production process, ensuring efficiency, meeting production targets, and maintaining quality standards.
- Identify responsibilities for different variances and their implications on managerial accountability.
Verified Answer
CZ
Claudia ZelayaJun 17, 2024
Final Answer :
False
Explanation :
The responsibility for materials price variance typically falls on the purchasing department or procurement team, who are in charge of negotiating prices with suppliers and purchasing the materials. However, the production manager may be involved in monitoring and controlling materials usage, which can impact the materials quantity variance.
Learning Objectives
- Identify responsibilities for different variances and their implications on managerial accountability.
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