On the Essence of Cost Control.

The question in the mind of management when it reviews the accounting reports appropriate for cost control is: "What are the causes of these variations and what has already been done to correct the situation?" rather than, "What are the causes of these variations, and how quickly can we determine what they are in order that they might be eliminated?"

Required:

Evaluate the efficacy of the above comments in terms of the materials presented in Chapter 9.

LO.1