Answer (A) is correct . The materials efficiency variance is the difference between actual and standard quantities used in production, times the standard price. An unfavorable materials efficiency variance is usually caused by wastage, shrinkage, or theft. Thus, it may be the responsibility of the production department because excess usage would occur while the materials are in that department. In addition, industrial engineering may play a role because it is responsible for design of the production process.
Answer (B) is incorrect because Purchasing rarely can control the materials efficiency variance.
Answer (C) is incorrect because Sales has no effect on the materials efficiency variance.
Answer (D) is incorrect because Sales has no effect on the materials efficiency variance.
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