The finance director of Paint Mixers Ltd has produced the table below showing the variance results for the first three months of the year: January February March Material price variance $3,000
A、$2,000
A、$1,000
A、Material mix variance $2,000
A、$750
A、$100
F、Material yield variance $4,000
A、$2,000
A、$50F Which of the following interpretations of the variances analysis exercise above is NOT correct?
A、The purchasing manager should be able to threaten to switch suppliers to get better deals and address the adverse material price variance
B、The materials mix variance is entirely under the control of the production manager
C、The favourable yield variance in March could be the result of operational efficiency
D、The responsibility for the initial poor performance must be borne by both the purchasing manager and the production manager
A、$2,000
A、$1,000
A、Material mix variance $2,000
A、$750
A、$100
F、Material yield variance $4,000
A、$2,000
A、$50F Which of the following interpretations of the variances analysis exercise above is NOT correct?
A、The purchasing manager should be able to threaten to switch suppliers to get better deals and address the adverse material price variance
B、The materials mix variance is entirely under the control of the production manager
C、The favourable yield variance in March could be the result of operational efficiency
D、The responsibility for the initial poor performance must be borne by both the purchasing manager and the production manager
【参考答案及解析】
The production manager controls both the mix and the production process and must alone bear responsibility for this initial poor performance.
The production manager controls both the mix and the production process and must alone bear responsibility for this initial poor performance.