Which of the Following Variances Is Most Likely the Responsibility

question 121

Multiple Choice

Which of the following variances is most likely the responsibility of the purchasing manager?

• A)Material quantity variance
• B)Labor efficiency variance
• C)Material price variance
• D)Overhead volume variance

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Definitions:

Net Income

The net income a company achieves following the deduction of all costs, taxes, and expenses from its total earnings.

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the owners' share.

Liabilities

Financial obligations or debts that a company owes to external parties, which must be paid back in the future.

Owner's Equity

The residual interest in the assets of a company after deducting all its liabilities, representing the ownership interest of shareholders.