Typically the production department and the purchasing departments need to work closely to make sure all the right materials are in place at the right time. If there is a price variance on a certain material ordered and received, the Production Department should be held accountable for this variance if it results from:

a. purchases made in uneconomical lot-sizes.

b. purchase of the wrong grade of materials.

c. rush orders arising from poor scheduling.

d. changes in the market prices of raw materials.