WHICH DEPARTMENT IS OFTEN RESPONSIBLE FOR THE DIRECT MATERIALSPRICE VARIANCE?A. THE PURCHASING DEPARTMENTB. THE ACCOUNTING DEPARTMENTC. THE BUDGETING DEPARTMENTD. THE FINANCE DEPARTMENTE. THE PRODUCTION DEPARTMENT

Step 1: Definition of Direct Materials Price VarianceThe Direct Materials Price Variance measures…

Answered: WHICH DEPARTMENT IS OFTEN RESPONSIBLE…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter8: Budgeting

Section: Chapter Questions

Problem 8DQ: Why should the timing of direct materials purchases be closely coordinated with the production...

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Similar questions

Responsibility for the materials price variance typically belongs to a. Marketing b. Personnel c. Production d. Purchasing
Explain why the Accounting Department should be responsible for producing quality cost reports.
What is the most important purpose of the cost of production report?
How are cost of production reports used for controlling and improving operations?
How does management determine the order in which support department costs are allocated under the sequential method?
The actions listed next are associated with either an activity-based operational control system or a traditional operational control system: a. Budgeted costs for the maintenance department are compared with the actual costs of the maintenance department. b. The maintenance department manager receives a bonus for beating budget. c. The costs of resources are traced to activities and then to products. d. The purchasing department is set up as a responsibility center. e. Activities are identified and listed. f. Activities are categorized as adding or not adding value to the organization. g. A standard for a products material usage cost is set and compared against the products actual materials usage cost. h. The cost of performing an activity is tracked over time. i. The distance between moves is identified as the cause of materials handling cost. j. A purchasing agent is rewarded for buying parts below the standard price set by the company. k. The cost of the materials handling activity is reduced dramatically by redesigning the plant layout. l. An investigation is undertaken to find out why the actual labor cost for the production of 1,000 units is greater than the labor standard allowed. m. The percentage of defective units is calculated and tracked over time. n. Engineering has been given the charge to find a way to reduce setup time by 75 percent. o. The manager of the receiving department lays off two receiving clerks so that the fourth-quarter budget can be met. Required: Classify the preceding actions as belonging to either an activity-based operational control system or a traditional control system. Explain why you classified each action as you did.
What are the objectives of a cost management information system?
Which of the following best describes the activities of the production function?a. maintenance, inventory control, and production planningb. production planning, quality control, manufac-turing, and cost accountingc. quality control, production planning, manufac-turing, and payrolld. maintenance, production planning, storage, andquality controle. manufacturing, quality control, and maintenance
Which of the following is the basic purpose of a responsibility accounting?a. variance analysisb. motivationc. authorityd. budgetinge. pricing
which type of costing system do we typically use for managerial accounting purposes. normal budget fixed actual
Ans.
The process of creating a formal plan and translating goals into quantitative form is Process costing Activity-based costing Budgeting Variance analysis

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WHICH DEPARTMENT IS OFTEN RESPONSIBLE FOR THE DIRECT MATERIALS PRICE VARIANCE? A. THE PURCHASING DEPARTMENT B. THE ACCOUNTING DEPARTMENT C. THE BUDGETING DEPARTMENT D. THE FINANCE DEPARTMENT E. THE PRODUCTION DEPARTMENT