A company wishing to isolate variances at the point closest to the point of responsibility will determine its material price variance when
A)material is purchased.
B)material is issued to production.
C)material is used in production.
D)production is completeD.

Question

Quizplus · Accepted Answer

Material price variance is typically calculated at the time of purchase to immediately identify any differences between the actual price paid for materials and the standard or expected price. This allows the company to address any issues with suppliers or purchasing processes as close as possible to the point of responsibility, which is the purchasing department.

A Company Wishing to Isolate Variances at the Point Closest