Analysis of variance, Cost Accounting

Assignment Help:

ANALYSIS OF VARIANCE

When the actual are not similar from the standards, variance exists. Variance may be unfavorable or favorable. When the actual cost is more than the standard cost, it is called unfavorable variance. If actual cost is less than the standard cost, the difference is called favorable variance.  Variance analysis is the origin of cost control under standard costing and leads to cost reduction as well as revision of standards. The variance analysis supports to pinpoint responsibilities to the man- agers, who can exercise the method of 'management by exception'.  Variances are mainly divided into two groups,                                                                      

i)  arising out of price and

ii)  arising out of usage or volume.


Related Discussions:- Analysis of variance

Davids net state lottery gains, One month before she died on April 14, 2002...

One month before she died on April 14, 2002, Barbara Gent (Amy's aunt) gave Amy a coin collection. Based on careful records that Barbara kept, the collection had a cost basis of $9

Factors affecting fund requirements, By the discussions we had previous, it...

By the discussions we had previous, it is not tough to come to the conclusion that numerous factors influence the fund or net working capital needs. Fund needs vary along with t

Determine the customer inter-arrival time, During the dinner hour, the dist...

During the dinner hour, the distribution of the inter-arrival time of customers at Burger Barn is predictable to be as follows: Inter-arrival Time Probabi

Job Order Costing, Bedovin Company manufactures office tables and chairs us...

Bedovin Company manufactures office tables and chairs using the job order cost system

Mr., behabioural aspect of standard costing on budget

behabioural aspect of standard costing on budget

What is the amount of compensation expense, Q. What is the amount of compen...

Q. What is the amount of compensation expense recognized for stock options for each year of the vesting period, given the following information?  A firm awards stock options at-

Determine the costs of goods, Savage Distribution markets CDs of performing...

Savage Distribution markets CDs of performing artist Little Sister.  At the beginning of October, Savage had in beginning inventory 1,200 Little Sister's CDs with a unit cost of $5

An impact on the breakeven, We've all experienced (or heard about) the chal...

We've all experienced (or heard about) the challenges that the airlines have been facing. Read the Zacks Investment Research article, "Airline Industry Stock Outlook - August 2012"

Tracking direct materials, Tracking Direct Materials Jack keeps full re...

Tracking Direct Materials Jack keeps full records of the material released to each job. When Donnie gathered up light bulbs, tape, breakers, wire, and wire nuts on the morning

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd