The production department should generally be responsible for materials price variances that resulted from:
A) purchases made in uneconomical lot-sizes.
B) rush orders arising from poor scheduling.
C) purchase of the wrong grade of materials.
D) changes in the market prices of raw materials.

Question

Quizplus · Accepted Answer

Rush orders often result from poor scheduling within the production department, leading to expedited shipping costs or premium pricing, which can cause materials price variances. Choices A, C, and D typically fall under the purview of the purchasing department or are influenced by external market factors, not the production department's direct actions.

The Production Department Should Generally Be Responsible for Materials Price