The starting point for determining the causes of an unfavorable materials price variance is the purchasing department.

Question

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The purchasing department is responsible for negotiating and acquiring materials at the best possible prices, and any negative variance in the price of materials could indicate an issue in the purchasing process such as paying too much for materials or not taking advantage of available discounts. Therefore, the purchasing department is the starting point for determining the causes of an unfavorable materials price variance.

The Starting Point for Determining the Causes of an Unfavorable