Give two reasons why dividing production cost variances into price and efficiency variances is useful for management

Question:

Give two reasons why dividing production cost variances into price and efficiency variances is useful for management control.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Cost Accounting

ISBN: 978-0077398194

3rd Edition

Authors: William Lanen, Shannon Anderson, Michael Maher

See More Books

Question Posted: Apr 26, 2012 04:28 AM

See More 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...
Newkirk Co. has identified one of its cost pools to be quality control and has assigned $$50,000$ to that pool. Number of inspections has been chosen as the cost driver for this pool; Newkirk...
21-4. Qu es la regla de los ocho segundos ?
Krause Company on January 1, 2012, enters into a five-year noncancelable lease, with four renewal options of one year each, for equipment having an estimated useful life of 10 years and a fair value...
Problem 7-5A (Part Level Submission) On July 31, Ivanhoe Ltd. had a cash balance of $12,653 in its general ledger. The bank statement from the Caisse Populaire on that date showed a balance of...
The Davis Lamp Company (DLC) is a wholesale company that purchases lamps from the manufacturer and resells them to retail stores. The company has three inventory items: desk lamps, table lamps, and...
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...
On May 1, 2018, Terra Company began the manufacture of a new internet paging device known as Flare. The company installed a standard costing system to account for manufacturing costs. The standard...
What is judgement sampling?Explain with a suitable example.
What is convenience sampling?Explain with a suitable example.
Customer Distribution Channels (all amounts in thousands of U.S. Dollars) Wholesale Customers Retail Customers Total Total N. America S. America Total Wholesale Wholesaler Wholesaler Retail Green...
MA Assignment 3 Motor Tyres manufactures one size of tyre in each of its production lines. The following information relates to one production line for the most recent period. The company uses the...
Describe an operational unit within an organization, and define the mission statement, goals, and operational objectives for the unit. The operational unit should be an organization they would like...
As far as friendships are concerned, opposites tend to attract. True/False
Wholesalers Ltd. deals in the sale of foodstuffs to retailers. Owing to economic depression, the firm intends to relax its credit policy to boost productivity and sales. The firms current credit...
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...
Deacon Company is a merchandising company that is preparing a budget for the three - month period ended June 3 0 th . The following information is available Deacon Company Balance Sheet March 3 1...
Mango Company applies overhead based on direct labor costs. For the current year, Mango Company estimated total overhead costs to be $460,000, and direct labor costs to be $230,000. Actual overhead...
Which of the following do we expect to be the horizon growth rate for a company (long term growth rate- say 30-50 years)? A) Inflation B) Industry Average C) Zero D) Market Beta

Give two reasons why dividing production cost variances into price and efficiency variances is useful for management

Question:

Step by Step Answer:

The action that management can take in response to price variances is probably quit...View the full answer

Fundamentals of Cost Accounting

Students also viewed these Managerial Accounting questions