Which Department Is Often Responsible for the Direct Materials Price

question 151

Multiple Choice

Which department is often responsible for the direct materials price variance?

• A) The accounting department.
• B) The production department.
• C) The purchasing department.
• D) The finance department.
• E) The budgeting department.

---

Definitions:

Raw Materials

Basic materials used in the manufacturing process that are not yet processed or transformed.

Accounts Payable

The amounts a company owes to suppliers or creditors for products or services bought on credit.

Job-Order Costing System

An accounting method used to track the costs associated with producing specific jobs or batches of products.

Overapplied

Refers to a situation where the amount of overhead allocated to products exceeds the actual overhead incurred, creating an overapplied balance.