Answer (D) is correct . An unfavorable materials quantity variance is usually caused by waste, shrinkage, or theft. Alternatively, an unfavorable variance could be attributable to the purchasing department’s not buying the proper quality of materials in an attempt to achieve a favorable material price variance. Thus, either the production manager or the purchasing manager could be responsible for a material usage variance.
Answer (A) is incorrect because Both the purchasing manager and the production manager could be at fault.
Answer (B) is incorrect because The plant controller is at too high a level for an investigation of a materials usage variance.
Answer (C) is incorrect because Both the purchasing manager and the production manager could be at fault.
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