If there is an unfavorable direct material usage variance due to the substandard quality of the raw material, who will be held responsible? Select one: a. Purchase manager b. Production manager c. Factory floor staff d. Human resources manager

If there is an unfavorable direct material usage variance due to the substandard quality of the raw material, who will be held responsible? Select one: a. Purchase manager b. Production manager c. Factory floor staff d. Human resources manager

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

If there is an unfavorable direct material usage variance due to the substandard quality of the raw material, who will be held responsible?

Select one:

a. Purchase manager

b. Production manager

c. Factory floor staff

d. Human resources manager

Expert Solution

Step 1

Solution:

If there is an unfavorable direct material usage variance due to the substandard quality of the raw material, Purchase manager will be held responsible for procuring poor quality material.

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