When Analyzing Direct Materials Price and Quantity Variances, the Responsibility

question 3

Multiple Choice

When analyzing direct materials price and quantity variances, the responsibility typically lies with

• A)controller and CFO.
• B)purchasing manager and production manager.
• C)purchasing and cost accounting manager.
• D)sales manager and production manager.

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Definitions:

Insurance Claim

A formal request by a policyholder to an insurance company for coverage or compensation for a covered loss or policy event.

Trade-In Allowance

The amount credited to the buyer when they exchange an asset towards the purchase of a new asset.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Commercial Substance

A characteristic of transactions that cause a significant change in the cash flows of a company.