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.