Which Department Is Customarily Held Responsible for an Unfavorable Materials

question 37

Multiple Choice

Which department is customarily held responsible for an unfavorable materials quantity variance?

• A) Quality control
• B) Purchasing
• C) Engineering
• D) Production

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Definitions:

Economies of Scale

Economies of scale refer to the cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Free Trade

An economic policy that allows for the unrestricted import and export of goods and services between countries without tariffs or quotas.

Production Costs

The expenses involved in manufacturing a product, including raw materials, labor, and overhead.

Tariff

A tax imposed by a government on imported or exported goods to protect domestic industries or to generate revenue.