Unformatted text preview: 10-5 Under management by exception, managers focus their attention on results that deviate from expectations. It is assumed that results that meet expectations do not require investigation. 10-6 Separating an overall variance into a price variance and a quantity variance provides more information for decision-making purposes. Moreover, price and quantity variances are usually the responsibilities of different managers. 10-7 The materials price variance is usually the responsibility of the purchasing manager. The materials quantity and labour efficiency variances are usually the responsibility of production managers and supervisors....
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- Spring '08
- Cost Accounting, materials price variance, Overhead Analysis, labour efficiency variances, theory questions, purchasing manager.