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10 December, 02:08

Which of the following types of variances would a purchasing manager most likely influence?

a) Direct labor efficiency.

b) Direct materials price.

c) Direct labor rate.

d) Direct materials quantity.

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Answers (1)
  1. 10 December, 06:00
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    b) Direct materials price.

    Explanation:

    The purchasing manager would be associated to the quantity purchased and for the purchase price it is bought.

    Therefore, labor variances are not his consideration.

    And also in material variances we know, direct material quantity variance is calculated for the quantity used in production and not the quantity purchased, although the later is dealt by purchase manager the former relates to production manager.

    Purchase manager is responsible and concentrates on the price at which the direct material is bought.

    Thus, the correct option is

    b) Direct materials price.
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