1. Who is responsible for material cost variances in a business? Explain.
2. who is responsible for material usage variances in a business? Explain.
3. What are the variable overhead variances used for?
4. What advantage if any does a standard cost system have over a traditional system.
Expert Answer
1. Material cost varinces are a measure of how well the cost of direct materials is controlled. The cost of materials is controlled by the purchasing manager. Thus, the purchasing manager is responsible for material cost variances.
2. Material usage variance is a measure of how efficiently the materials are utilized. The production
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