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 to both the inventory manager and the purchasing agent as these individuals would be able to provide insights into the purchasing and usage of indirect materials that could help explain the variable overhead spending variance. The inventory manager would be able to provide information about inventory levels, usage rates, and potential waste or spoilage, while the purchasing agent would be able to provide information about the prices paid for these materials, any changes in pricing or suppliers, and any ordering patterns that could impact the variance.

When the Production Manager Is Investigating and Understanding the Cause