When Analyzing Direct Materials Price and Quantity Variances,the Responsibility Typically

question 9

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:

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefits to society from the trade of goods or services.

Equilibrium

A state of balance where demand equals supply in a market, leading to a stable price.

Total Surplus

The aggregate of consumer surplus plus producer surplus in a marketplace, symbolizing the overall advantages to society.