The material price variance (computed at point of purchase)is
A)the difference between the actual cost of material purchased and the standard cost of material purchased.
B)the difference between the actual cost of material purchased and the standard cost of material used.
C)primarily the responsibility of the production manager.
D)both a and c.

Question

Quizplus · Accepted Answer

The material price variance is the difference between the actual cost of material purchased and the standard cost of material purchased. It is calculated at the point of purchase and is used to evaluate the purchasing manager's performance. It shows how well the purchasing department has done in buying materials at the expected price.

The Material Price Variance (Computed at Point of Purchase)is