Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need answers for 18-30 please A cost center incurs costs and generates revenues and cost center managers are evaluated on the profitability of their
I need answers for 18-30 please A cost center incurs costs and generates revenues and cost center managers are evaluated on the profitability of their centers. The formula for computing return on investment is controllable margin divided by average operating assets. Budget reports provide the feedback needed by management to see whether actual operations are on course. A standard is a unit amount, whereas a budget is a total amount. Standard costs may be incorporated into the accounts in the general ledger Normal standards should be rigorous but attainable. Once set, normal standards should not be changed during the year. The overhead controllable variance relates primarily to fixed overhead costs. There could be instances where the production department is responsible for a direct materials price variance. The starting point for determining the causes of an unfavorable materials price variance is the purchasing department. Variance analysis facilitates the principle of "management by exception". In concept, standards and budgets are essentially the same. The use of an inexperienced worker instead of an experienced employee can res in favorable labor price variance but probably an unfavorable quantity variance
I need answers for 18-30 please
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started