Give two reasons why dividing production cost variances into price and efficiency variances is useful for management
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
The action that management can take in response to price variances is probably quit...View the full answer
Answered By
Khurram shahzad
I am an experienced tutor and have more than 7 years’ experience in the field of tutoring. My areas of expertise are Technology, statistics tasks I also tutor in Social Sciences, Humanities, Marketing, Project Management, Geology, Earth Sciences, Life Sciences, Computer Sciences, Physics, Psychology, Law Engineering, Media Studies, IR and many others.
I have been writing blogs, Tech news article, and listicles for American and UK based websites.
4.90+
5+ Reviews
17+ Question Solved
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
Question Posted:
Students also viewed these Managerial Accounting questions
-
Give two reasons why futures markets may not be started on a commodity. Give an example of such a commodity to support your answer.
-
Give two reasons why caches are useful. What problems do they solve? What problems do they cause? If a cache can be made as large as the device for which it is caching (for instance, a cache as large...
-
Give two reasons why the official inflation rate may understate the "true" rate of inflation. Illustrate by examples.
-
Comment on the following statement: A financial projection presents an organizations expected results, given a hypothetical assumption.
-
Alpha Co. acquired 20,000 shares of Beta Co. on January 1, 2012, at $12 per share. Beta Co. had 80,000 shares outstanding with a book value of $800,000. The difference between the book value and fair...
-
Running Data began operations on February 1. The company produces GPS watches designed for runners. On February 15, the company purchased 1,000 DVD discs to include with each running watch it sells....
-
Smith \& Sons reports sales revenue of \(\$ 1,000,000\) on its income statement. Its balance sheet reveals beginning and ending accounts receivable of \(\$ 92,000\) and \(\$ 60,000\), respectively....
-
Specialty Metals, Inc., a fast-growing company that makes metals for equipment manufactures, has an $800,000 line of credit at its bank. One section in the credit agreement says that the ratio of...
-
In an interaction plot for a two factor, two level experiment, the vertical lines are drawn above "A low" and "B low
-
Kelly is self-employed and incurs $2,200 of business meal expenses in connection with business travel. $500 of the business meal costs are considered to be lavish or extravagant. How much can Kelly...
-
Actual revenues are greater than budgeted for December, so our revenue variance is favorable. Give an example of when this would be good news and when it could be bad news.
-
A rush order for a major customer has led to considerable overtime and an unfavorable variance for production costs. Is this variance the responsibility of the marketing manager, the production...
-
Eastland Company reports the following for the month of June. Instructions (a) Compute the cost of the ending inventory and the cost of goods sold under (1) FIFO (2) LIFO. (b) Which costing method...
-
Jacky would like to buy a new car in four years time. She is considering two options of savings to achieve this, either through depositing a lumpsum in a savings account or through regular deposits...
-
Describe strategies (using share options when appropriate) which could be used to take advantage of the following situations: (1)high volatility in share prices; (2)stable share prices; (3)share...
-
Sheridan Corporation would like to purchase a new truck, but the dealer will not accept Sheridan's old truck as a trade- in on purchase. Sheridan looked up the value of its old truck on Auto Trader...
-
(20 pts) A micromachined accelerometer is made of a silicon fixed-free cantilever (50-um long, 10-um wide, and 2-m thick) and a proof mass (weight: 1 mg) concentrated at the free end of the...
-
Consider two retailers that rely on franchisees to sell their products. Company X relies exclusively on franchised outlets that are owned by independent businesspeople. Company Y relies on...
-
Explain the role of FDIC.
-
Charles owns an office building and land that are used in his trade or business. The office building and land were acquired in 1978 for $800,000 and $100,000, respectively. During the current year,...
-
The javac converts program into (a) Hexadecimal code (b) Octal code (c) Byte code (d) Object code
-
Model, Inc., produces model automobiles made from metal. It operates two production departments, Molding and Painting, and has three service departments, Administration, Accounting, and Maintenance....
-
Gipps Business College (GBC) has two degree programs, undergraduate (UG) and graduate (GRAD) and three service departments, information technology (IT), Event Planning (EP), and Career Services (CS)....
-
Imperial Mining is a coal company that produces three grades of coalHigh, Medium, and Lowin fixed proportions. The joint costs of mining total $1,500,000. In a typical month, the company will mine...
-
Given the following information: Percent of capital structure: Debt Preferred stock Common equity (retained earnings) Additional information: Bond coupon rate 40% 20 40 8% Bond yield to maturity 6%...
-
8: Quiz MC.09.049.Algo Assignment Score: 0.00% Save Submit Assignment for Grading Question 37 of 40 A stock just paid a dividend of Do = $1.00. The required rate of return is rs = 12.4%, and the...
-
S Henry is taking out an amortized loan for $88,000 to open a small business and is deciding between the offers from two lenders. He wants to know which one would be the better deal over the life of...
Study smarter with the SolutionInn App