ECONOMICS

Detailed explanation-1: -Feedback False: Correct! The Purchasing Department would not normally begin an investigation regarding an unfavorable materials quantity variance, since that is a production issue.

Detailed explanation-2: -In which department would an investigation normally begin regarding an unfavorable materials quantity variance? Production.

Detailed explanation-3: -The production department is typically responsible for an unfavorable material quantity variance. The production department is responsible for ordering and using the materials.

Detailed explanation-4: -An unfavorable materials quantity variance indicates that: actual usage of material exceeds the standard material allowed for output.

Detailed explanation-5: -The investigation of a materials price variance usually begins in the purchasing department. Labor quantity variances usually result from misallocation of workers.