Which Department Is Often Responsible for the Direct Materials Price

question 113

Multiple Choice

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

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

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Definitions:

Installment

A method of paying for goods or services or repaying a loan through regular, scheduled payments.

Accounting Equation

The basic formula of double-entry accounting: Assets equal Liabilities plus Equity.

Accounting Equation

The fundamental equation of double-entry bookkeeping: Assets = Liabilities + Equity, representing the financial position of a business.

Liabilities

Financial obligations or debts owed by a business to another entity, payable in the future.