Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Significance points of Variance
The following significant points must be kept in mind:
Controllability:
Controllability should also influence the decision whether to examine further. When there is a common worldwide price raise in the price of a significant raw material there is nothing that can be done internally to control the consequence of this. When a central decision is made to award all employees a 10% raise in salary, staff costs in a division will rise by this amount and the variance is not controllable by a division’s manager. Uncontrollable variances call for a change in the plan, not an examination into the past.
Variance trend:
When, say, an efficiency variance is Sh.1,000 adverse in month 1, the apparent conclusion is that the procedure is out of control and that corrective action should be taken. This might be correct, though what if the same variance is Sh.1,000 adverse every month? The trend points out that the procedure is in control and the standard has been wrongly set.
Assume, though, that the same variance is constantly Sh.1,000 adverse for each of the first six months of the year though that production has gradually fallen from 100 units in month 1 to 65 units by month six. The variance trend in absolute terms is steady, though associative to the number of units produced, effectiveness has got gradually worse.
what are the different arguments against direct materials, direct labor, and factory overhead
When forming a company, the options are sole proprietor, partnership, and corporation. Most choose corporation. Why is the corporate form seen to be best? What rights do the stockh
Optimum Solution From the stand point of implementing the LP solution, the mathematical classification of the variables as basic and non-basic is of no importance and should be
Operating Cycle Method In this way, total operating expenses for a period are divided via the number of operating cycles in the relevant period to compute the cash need for wor
Question 1: A company's budgeted production of Product Zebra for the month ending 30 November 2004 was 10,000 units. The fixed overheads were budgeted at Rs3,200,000. The st
question 3.5A Trial balance sheet,income statement, owner''s equity and balance sheet
Control Control includes a comparison of actual performance with the plan so that deviation from the plan can be identified and corrective action taken. It can be define
Current ratio Meaning: this ratio establishes a relationship among current assets and current liabilities. Objective: the objective of computing these ratios is to calcu
ABC System and service organizations The ABC system has been taken up as applied to a manufacturing organizations with the same efficiency. One basic characteristic of service
You are charged with describing the important considerations in the decision-making process to upper management. In your response, be sure to include the following: • A descript
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd