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An unfavorable materials cost flexible budget variance indicates that the production manager should be reprimanded. This statement is

1) True
2) False

User Rob Rose
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1 Answer

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Final answer:

An unfavorable materials cost flexible budget variance does not necessarily indicate that the production manager should be reprimanded.

Step-by-step explanation:

An unfavorable materials cost flexible budget variance does not necessarily indicate that the production manager should be reprimanded. The materials cost flexible budget variance measures the difference between the actual cost and the budgeted cost of materials.

If the unfavorable variance is caused by factors beyond the production manager's control, such as unexpected price increases or supplier issues, it would not be fair to reprimand them. However, if the variance is due to poor management or inefficient use of materials, then corrective action may be necessary.

User Nilesh Khisadiya
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