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The basic principles of standard costing and variance analysis may be adapted to the needs of relatively new methods of accounting such as activity-based costing and throughput accounting.
Requirements
(a) Describe the core concept behind Activity-based costing insofar as it relates to variance analysis and talk about the manner in which variance analysis must be adapted when in ABC mode.
(b) Describe the core concept behind Throughput Accounting insofar as it relates to variance analysis and talk about the manner in which variance analysis must be adapted when in TA mode.
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