ECONOMICS

Detailed explanation-1: -The difference between the standard cost of the product and its actual cost is called variance. The material quantity variance is the most useful variance in assessing the performance of the Purchasing Department. Highly trained workers could have a favorable effect on the material quantity variance.

Detailed explanation-2: -Answer and Explanation: The Direct Material Price Variance (DMPV) is the most useful in assessing the performance of the purchasing department manager (PDM). DMPV is the difference between the actual price paid by the PDM for the raw material and the estimated price of raw material.

Detailed explanation-3: -The variance that is most useful in assessing the performance of the purchasing department manager is: the materials price variance.

Detailed explanation-4: -Ideal standards should be used for forecasting and planning. 4. In general, the purchasing agent is responsible for the material price variance.

Detailed explanation-5: -What is a Material Quantity Variance? A material quantity variance is the difference between the actual amount of materials used in the production process and the amount that was expected to be used.