Important points regarding to the variance analysis, Cost Accounting

Assignment Help:

Important Points Regarding to the Variance Analysis

Variance reporting concentrates on both with favourable and unfavourable variances. Normally unfavourable variances are punished on the responsible persons whereas favourable variances are rewarded. Conversely, it is a rule of thumb but not usually the case. Keep in mind that an unfavourable variance might arise because of factors beyond the employee's or manager's control, whether in case you can't punish that person:  quite, you have to explain the unfavourable variance in terms of the uncontrollable factor of alternatively adjust the standard to incorporate the changed circumstances. The similar case can be argued for favourable variances.


Related Discussions:- Important points regarding to the variance analysis

Issues to consider when making decisions, Q. Issues to consider when making...

Q. Issues to consider when making decisions? At activity level A it can be seen from diagram that sales revenue line intersects the total cost line specifying that this is the

What would be the impact on net income, Brandywine Homecare, a not-for-prof...

Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $

Prepare a direct material purchases budget., 1) The Svelte Jeans Company pr...

1) The Svelte Jeans Company produces two different types of jeans. One is called the "Simple Life" and the other is called the "Fancy Life". The company sales budget estimates that

Accounts payable, Accounts Payable or sundry creditors are generally unsecu...

Accounts Payable or sundry creditors are generally unsecured debts owed through the firm. These are also considered to as payables on open accounts. They may not be evidenced throu

Expenditure for the base period and the current period, 1. The table below ...

1. The table below gives data for Southland where there are three consumption goods: bananas, coconuts and grapes. Goods Quantity in base period basket

Evaluate equivalent annual cost, An industrial drill costs $60.000 to purch...

An industrial drill costs $60.000 to purchase and $10,000 to install seven years ago. The market value now is $33.000 and this will decline by 12% of current value each year for th

Calculate actual costs of work performed, This is defined as an actual amou...

This is defined as an actual amount paid or incurred, as opposed to estimated cost or standard cost. In contracting, actual costs amount includes direct labor, direct material, and

Profit or loss on the disposal of the fixtures and fittings, This task invo...

This task involves the recording of non-current asset information in the general (nominal, main) ledger and other non-current asset matters. You are assisting in preparing the a

Cost estimation methods, using the high low method how do i calculate the c...

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000

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