Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

Financial Accounting

6. Internal Controls and Reporting Cash

Fraud and the Fraud Triangle

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Multiple Choice

Unfavorable materials price and quantity variances are generally the responsibility of the:

Board of directors and external auditor, respectively

Sales manager and marketing manager, respectively

Chief financial officer and internal auditor, respectively

Purchasing manager and production manager, respectively

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Verified step by step guidance

Understand the concept of materials price variance: This variance occurs when the actual cost of materials differs from the standard cost. It is typically the responsibility of the purchasing manager, as they negotiate prices and select suppliers.

Understand the concept of materials quantity variance: This variance arises when the actual quantity of materials used in production differs from the standard quantity expected. It is generally the responsibility of the production manager, as they oversee the efficiency of the production process.

Analyze why the purchasing manager is responsible for unfavorable price variances: The purchasing manager's role includes sourcing materials at competitive prices. If prices are higher than expected, it may be due to poor negotiation or supplier selection.

Analyze why the production manager is responsible for unfavorable quantity variances: The production manager ensures that materials are used efficiently during production. If more materials are used than planned, it could indicate inefficiencies or waste in the production process.

Conclude that unfavorable materials price and quantity variances are generally the responsibility of the purchasing manager and production manager, respectively, based on their roles in managing costs and efficiency.