1B1T FORTUNE CORPORATION’S MARKETING DEPARTMENT RECENTLY ACCEPTED A R...

116. CSO: 1B1e LOS: 1B1t

Fortune Corporation’s Marketing Department recently accepted a rush order for a

nonstock item from a valued customer. The Marketing Department filed the necessary

paperwork with the Production Department, which complained greatly about the lack of

time to do the job the right way. Nevertheless, the Production Department accepted the

manufacturing commitment and filed the required paperwork with the Purchasing

Department for the needed raw materials. A purchasing clerk temporarily misplaced the

paperwork. By the time the paperwork was found, it was too late to order from the

company’s regular supplier. A new supplier was located, and that vendor quoted a very

attractive price. The materials arrived and were rushed into production, bypassing the

normal inspection processes (as directed by the Production Department supervisor) to

make up for lost time. Unfortunately, the goods were of low quality and created

considerable difficulty for Fortune’s assembly-line personnel. Which of the following

best indicates the responsibility for the materials usage variance in this situation?

a. Purchasing.

b. Purchasing and Marketing.

c. Marketing and Production.

d. Purchasing, Marketing, and Production.

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