Asked by Jacob Willard on Apr 29, 2024
Verified
Material price variances are examples of metrics used for measuring a sales department's performance.
Material Price Variances
Material price variances represent the difference between the actual cost of raw materials used in production and the expected or standard cost.
Sales Department
The division within a company responsible for the sale of products and services, including marketing and customer relations.
- Gain an understanding of several metrics including material price variances and operating income, and their implementation in distinct departments.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
False
Explanation :
Material price variances are used to measure the efficiency and cost management of the purchasing or production department, not the sales department.
Learning Objectives
- Gain an understanding of several metrics including material price variances and operating income, and their implementation in distinct departments.
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