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:

Stock Warrants

Securities that give the holder the right to purchase a company's stock at a specified price before a certain date.

Fixed Compensatory Option Plan

A stock option plan that provides employees with the right to purchase company shares at a fixed price as part of their compensation package.

Service Period

The period of time an employee must work to earn benefits or rights under an employment contract or agreement.

Fair Value

The estimated market price of an asset or liability, reflecting current market conditions rather than historical cost.