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1. Why is it important to investigate both price (rate) and volume (efficiency) variances when rewarding employees for satisfactory work when performance evaluations are based on meeting budgets?
2. What are some qualitative considerations that might be helpful in employee performance evaluations?
This question is on variance analysis in managerial or cost accounting. More specifically, it asks for computations of direct material price variance, direct material efficiency or usage variance, the flexible budget variance, and determining whet..
The following information provides the amount of cost incurred in May for the cost items indicated. During May 16,000 units of the firm's single product were manufactured.
Evaluate the capital loss
Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.
During May, the number of equivalent full units of materials applied to units produced by Department Q totaled 50,000, computed as follows: beginning inventory, 7,000 equivalent full units; units started and completed in May, 35,000 equivalent ful..
The following table presents the weekly average of direct materials costs per unit for two products. How could the manager of the department that makes these products use this information?
Give some examples of the types of nonfinancial factors that managers would consider more important in today's capital investment decisions than they were in the past.
What is a rolling budget? Why are they prepared? Describe why some types of companies would employ a rolling budget instead of a master budget.
Prepare a schedule of cost of goods manufactured for the month. Prepare a schedule of cost of goods sold for the month.
Needham Company uses normal costing in its job-costing system. Partially completed T-accounts and additional information for Needham for 2008 are as follows:
Use the contribution margin ratio CVP formula to compute Peyton Travel's break-even sales in dollars. If the average sales price of a ticket is $660.00; how many tickets must be sold to reach break-even?
Detroit Disk, Inc. is a retailer for digital video disks. The projected net income for the current year is $600,000 based on a sales volume of 400,000 video disks. Calculate Detroit Disk's break-even point for the current year in number of video di..
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