The investigation of a materials price variance usually begins in the
A)first production department.
B)purchasing department.
C)controller's office.
D)accounts payable department.

Question

Quizplus · Accepted Answer

The purchasing department is responsible for selecting suppliers and negotiating purchase contracts. The department is also responsible for ensuring that quality materials are procured to meet production requirements at a reasonable cost. As such, any significant variance in materials price will usually be investigated by the purchasing department first.

The Investigation of a Materials Price Variance Usually Begins in the