Question

The variance that is most useful in assessing the performance of the purchasing department manager is:...

The variance that is most useful in assessing the performance of the purchasing department manager is:

Group of answer choices:

A. the materials price variance

B. the direct labor efficiency variance

C. the direct labor rate variance

D. the materials quantity variance

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Answer #1
The variance that is most useful in assessing the performance of the purchasing department manager is the materials price variance
The purchasing department manager is responsible for material purchases and is accountable for variation is prices of materials prurchased.
The performance of the purchasing department manager would be considered good when prices of materials purchased is within standard.
Option A the materials price variance is correct
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