Why is the identification of favorable variances

Assignment Help Managerial Accounting

Reference no: EM132713928

Question 1: Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs?

Please explain. As you are considering the flexible budgeting topic of the week, it is important for you to look at this analysis as a significant contribution to the management of the company. Knowing what the bottom line profit or loss is important.

But what is more important is to understand how your actual results varied in terms of units sold versus how the actual cost of each unit differed from the budget. Please do watch the video available in this week's resources - you can turn the sound off and read the script on the right side if you need to.

The lecturer has an excellent example that will help you. Do you have an example that you can share? Sometimes that's the best way to answer the question.

Reference no: EM132713928

Questions Cloud

What is the probability of a breakdown : What is the probability of a breakdown before 6,000 hours? Before 9,000 hours? Would you prefer a policy of preventive maintenance

What issues brought this case to court : What issues brought this case to court? What were the main points of disagreement? When and how was the case adjudicated?

Describe teaching experience and discuss your observations : In 1,500 words, describe the teaching experience and discuss your observations. The written portion of this assignment should include.

What is the probability of a breakdown : What is the probability of a breakdown before 6,000 hours? Before 9,000 hours? Would you prefer a policy of preventive maintenance

Why is the identification of favorable variances : Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control

Determine the inventory cost using the weighted average cost : The periodic inventory system is used. Determine the inventory cost using the (a) first-in, first-out (FIFO) method; (b) last-in, first-out (LIFO) method

Aspects of deming system of profound knowledge : Explain the four aspects of Deming's system of profound knowledge:

Organizational change plan : Create a plan for a proposed change in implementing EMRs in your organization.

Explain the importance of financial education : Analyze and explain how the term financial management has changed after the recent economic crisis. Explain the importance of financial education.

User Account

All Pages