Which of the Following Is Not True Regarding the Use

question 135

Multiple Choice

Which of the following is not true regarding the use of materials variance information?

• A) The purchasing agent has the responsibility for controlling the materials price variance.
• B) The production manager is generally responsible for materials usage.
• C) The production manager is concerned with minimizing scrap, waste, and rework.
• D) The purchasing department is responsible for acquiring quality materials.
• E) All of these are true.

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Definitions:

Adjusting Journal Entry

a bookkeeping entry made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Net Income

The remaining income of a company once all taxes and costs are deducted from its total revenue.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, representing the wear and tear, or obsolescence of the asset.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments are made for expenses and revenues at the end of an accounting period.