When the production manager is investigating and understanding the cause of the variable overhead spending variance relating to indirect materials, he will most likely want to talk to the
A)inventory manager.
B)purchasing agent.
C)design engineer.
D)both the inventory manager and the purchasing agent.

Question

Quizplus · Accepted Answer

The production manager would want to talk with both the inventory manager and the purchasing agent because the indirect material spending variance could be caused by issues with inventory management (such as over-purchasing) or with procurement (such as purchasing at a higher cost than necessary). By speaking with both individuals, the production manager can more accurately identify the cause of the variance and take appropriate actions.

When the Production Manager Is Investigating and Understanding the Cause