Which of the following best explains why accountants separate materials variances into a purchase price vari- ance

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Which of the following best explains why accountants separate materials variances into a purchase price vari- ance and a usage variance?

a. Different individuals may be responsible for each variance.

b. Materials might not be purchased and used in the same period.

c. These two variances are likely to be more informative to top management than one overall materials variance.

d. All of the above. ki5

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Accounting A Business Perspective

ISBN: 9780075615859

7th Edition

Authors: Roger H. Hermanson, James Don Edwards, Michael W. Maher

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