There are two ways of computing materials price variance.

Calculating Material price variances when the materials are purchased than they are used in production is a preffered method by most of companies. There are two reasons for this. First, delaying the computation of the price variance until the materials used would result in less timely variance report. Second, by computing the price variance when the materials are purchased, the materials are carried in the inventory accounts at their standard costs. This greatly simplifies book keeping. When the materials price variance is computed at the time of purchase of materials it is typically called materials purchase price variance.

Earlier the variances are evaluated , it is always better that the sooner problems are addressed ,evaluated and corrected. Though the purchase manager has control over the price paid for goods and is therefore responsible for any price variation, there are other factors that influence the price paid for the goods. Price of a good purchased depends on factors like number of units ordered in a lot, how the order is delivered, and the quality of materials purchased. A deviation in any of these factors from what was assumed when the standards were set can result in price variance. For example purchase of second grade materials rather than top-grade materials may be a reason of favorable price variance, since the lower grade material will generally be less costly but perhaps less suitable for production and can be a reason of unfavorable materials quantity variance. But there are other factors beyond the control of the purchasing manager that could result on a materials price variance. For example, production is scheduled in such a way that the purchasing manager is pushed to place an order with must request express delivery. In this situation the production manager should be held responsible for the resulting price variance

In the case of Coffee Company, when material price variance is calculated with a perspective of total material cost as purchasing managers responsibility, the actual quantity considered is the quantity that has been purchased for the purpose of business. However, when the responsibility of material cost is attributable to the production manager, the actual input quantity is changed as the quantity that has been consumed for production.

The defining characteristic of any desert is that it is dry. But, what makes the deserts most beautiful is that somewhere it hides a well. The desert has a beauty all its own, A rustic scene of something to behold. The sun has strong effects, as it can blind, But shaded eyes detect the wonders found. The deserts greenery is not the marsh, But dry and special kind of color green. Geographic conditions such as location, high atmospheric pressure, and proximity of mountain ranges determine just what type of desert it is. The Sahara is the largest hot desert in the world, spanning over 3.6 million square miles and running through several countries in Northern Africa including Egypt, Morocco, Niger etc. Its name, Sahara, is derived from the Arabic word for desert. The hottest temperature ever was recorded in the Sahara Desert - an astonishing 58 degrees Celcius. The vast majority of the Sahara is a large expanse of sand, though some mountain ranges and grasslands are present. Why is this desert so important to Africans? How do people survive its harsh, dry climate? And is the Sahara getting bigger, or smaller? By studying satellite photos, some scientists have come to believe that the Sahara regularly shrinks and grows. In the early 1980s, the Sahara's southern edge expanded into the Sahel, a dry band that separates the desert from the savanna. But by the mid-1980s this area was green and wet again. The Sahara receives less than three inches of rain a year. Even in the Sahara's wettest areas, it may rain twice one week and not rain again for years. As the world's biggest desert, the Sahara covers a third of the African continent-an area about the size of the United States. What makes the Sahara a desert? The Sahara is one of the hottest places on Earth. Even though temperatures there may rise to 136 F (57.7 C), its dryness, not heat, that makes a place like the Sahara a desert. The frozen continent of Antarctica is so dry that some scientists consider it a desert, too. And that is why the poetry of the earth is never dead. Thank You