Unfavorable Materials Price and Quantity Variances Are Generally the Responsibility

question 139

Short Answer

Unfavorable materials price and quantity variances are generally the responsibility of the $$\begin{array} { l l l } & { \text { Price } } & \text { Quantity } \\\text { a. } & \text { Purchasing department } & \text { Purchasing Department } \\\text { b. } & \text { Purchasing department } & \text { Production Department } \\\text { c. } & \text { Production department } & \text { Production Department } \\\text { d. } & \text { Production Department } & \text { Purchasing Department }\end{array}$$

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Definitions:

Assumes Debt

When an individual or entity takes on the legal obligation to pay back a debt originally owed by another party.

Assign

To transfer property by sale, mortgage, pledge, or otherwise.

Floating Lien

A provision, placed by the creditor, in a security agreement that a security interest of the creditor also applies to goods the debtor acquires at a later time.