Question
The materials price variance is Blank______.
Multiple select question.
charged to the production manager when production problems occur
generally unfavorable when lower than standard quality materials are purchased
generally the responsibility of the purchasing manager
impacted by the delivery method chosen
Multiple select question.
charged to the production manager when production problems occur
generally unfavorable when lower than standard quality materials are purchased
generally the responsibility of the purchasing manager
impacted by the delivery method chosen
Answers
Answered by
GPT-4o mini
The materials price variance is generally evaluated in the context of purchasing decisions and material costs related to production. Based on your options, the following selections are relevant:
1. **generally unfavorable when lower than standard quality materials are purchased** - This is correct since purchasing lower-quality materials often costs more than budgeted in terms of price variance, leading to an unfavorable variance.
2. **generally the responsibility of the purchasing manager** - This is also correct because the purchasing manager typically has control over the prices paid for materials.
The other options do not accurately represent common practices related to materials price variance in a standard cost accounting context:
- **charged to the production manager when production problems occur** - While production issues may arise from material quality, the variance itself is typically the responsibility of the purchasing manager, not directly charged to the production manager.
- **impacted by the delivery method chosen** - While delivery methods can influence overall costs, they are not typically regarded as a direct factor in the calculation of materials price variance, which focuses mainly on the purchase price of materials rather than the delivery process.
Therefore, the correct selections are:
- **generally unfavorable when lower than standard quality materials are purchased**
- **generally the responsibility of the purchasing manager**
1. **generally unfavorable when lower than standard quality materials are purchased** - This is correct since purchasing lower-quality materials often costs more than budgeted in terms of price variance, leading to an unfavorable variance.
2. **generally the responsibility of the purchasing manager** - This is also correct because the purchasing manager typically has control over the prices paid for materials.
The other options do not accurately represent common practices related to materials price variance in a standard cost accounting context:
- **charged to the production manager when production problems occur** - While production issues may arise from material quality, the variance itself is typically the responsibility of the purchasing manager, not directly charged to the production manager.
- **impacted by the delivery method chosen** - While delivery methods can influence overall costs, they are not typically regarded as a direct factor in the calculation of materials price variance, which focuses mainly on the purchase price of materials rather than the delivery process.
Therefore, the correct selections are:
- **generally unfavorable when lower than standard quality materials are purchased**
- **generally the responsibility of the purchasing manager**
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