The purchasing department is often responsible for the events that create a direct materials price variance.

Question

Quizplus · Accepted Answer

The purchasing department is responsible for sourcing and negotiating the prices of direct materials, which can directly impact the direct materials price variance. The variance occurs when the actual purchase price of materials differs from the standard or expected price. Therefore, the purchasing department plays a critical role in managing this variance.

The Purchasing Department Is Often Responsible for the Events That