Sylvain Durier is the purchasing agent for Food Manufacturing Company. Marge Belvedere is head of the production planning and control department. Every six months, Belvedere gives Durier a general purchasing program. Durier gets specifications from the engineering department. He then selects suppliers and negotiates prices. When he took this job, Durier was informed very clearly that he bore responsibility for meeting the general purchasing program once he accepted it from Belvedere.

During week 24, Durier was advised that Part No.1234a critical partwould be needed for assembly on Tuesday morning of week 32. He found that the regular supplier could not deliver. He called everywhere and finally found a supplier in the West and accepted the commitment.

He followed up by mail. Yes, the supplier assured him, the part would be ready. The matter was so important that on Thursday of week 31, Durier checked by phone. Yes, the shipment had left in time. Durier was reassured and did not check further. But on Tuesday of week 32, the part had not arrived. Inquiry revealed that the shipment had been misdirected by the railroad and was stuck in Winnipeg.

Required

Select the choice as to how the purchasing agent may feel and what responsibility he may have regarding the costs being charged to his department.

A.

The purchasing agent may feel that it is not fair under responsibility accounting. He believes it is the responsibility of the plant manager due to their production planning. Therefore, the ultimate responsibility does not lie with the person who accepts the assignment but with the plant manager's planning.

B.

The purchasing agent may feel that he has done everything he possibly could. He must realize that he is the one who is in the best position to evaluate the situation. He accepted the assignment and knows that he must meet the needs of the plant manager. If he cannot, he takes the ultimate responsibility for the failure.