Why do some firms choose to use a two-variance analysis instead of a three-variance or a four-variance

Question:

Why do some firms choose to use a two-variance analysis instead of a three-variance or a four-variance analysis of the total overhead variance for the period?

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

Step by Step Answer:

Related Book For book-img-for-question

Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

See More Books

Question Posted: Apr 18, 2013 05:51 AM

See More Questions

Why do some firms choose not to use the services of 3PL firms?
Why do some firms measure customer profitability? In what situation(s) would a firm not want to measure customer profitability?
Why do firms hold cash balances? Why do some firms hold larger cash balances than other firms?
Nu Company reported the following pretax data for its first year of operations. Net sales 2,930 Cost of goods available for sale 2,420 Operating expenses 750 Effective tax rate 20 % Ending...
Which of the alkynes of molecular formula C5H8 can be prepared in good yield by alkylation or dialkylation of acetylene? Explain why the preparation of the other C5H8 isomers would not be practical.
Activity-Based And Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows:...
What Is the Secret to Responsible Leadership? (pp. 3645)
The following is an excerpt from a conversation between Mark Loomis and Krista Huff. Mark is debating whether to buy a stereo system from Tru-Sound Systems, a locally owned electronics store, or...
Galley Grub delivers restaurant supplies throughout the city. Galley Grub uses activity-based costing to charge the delivery cost. The activity rates are: $10 per order and $2 per item. One of Galley...
Recently, the number of students enrolled in the marketing program dropped while enrollment in the psychology program increased. The chair of the marketing department will probably use as a first...
As long as the total actual factory overhead is not significantly different from the total standard applied factory overhead for the period, there is no need to conduct further analyses of the...
What is the difference between the applied variable overhead and the total variable overhead in the flexible budget? What is the difference between the applied factory overhead and the total flexible...
Describe the four steps in the closing process.lo1
Briefly, discuss the use of survey research in exploratory, descriptive, explanatory, and evaluation studies. Using a criminal justice example select one type of research study and develop one...
Medical Helicopters In a study of helicopter usage and patient survival, results were obtained from 47,637 patients transported by helicopter and 111,874 patients transported by ground (based on data...
Woodland Hills Company reported income before taxes (pretax financial income) in its income statement of $60,000. Among the items included in the computation of pretax financial income were the...
cest Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the past two decades this...
The activation energy for the gas phase decomposition of isobutyl bromide is 211 kJ. (CH3)2CHCH2 Br (CH3)2C=CH2+ HBr The rate constant at 676 K is 5.73 x 10-4 s. The rate constant will be 0.00647 s...
The balance sheet of Bayview Amusements, Inc., at December 31, 19X5, reported 100,000 shares of no-par common stock authorized, with 30,000 shares issued and a Common Stock balance of $\$ 180,000$....
What exactly is a prima facie duty? How does an ethic of prima facie duties differ from monistic and absolutist ethical theories?
Describe the effect of an increase in next periods income on the intertemporal budget constraint. If next years income increases by $3,000 and the interest rate is 5%, by how much does the...
What role can a team leader play in creating an effective team?
Describe how organizational culture can influence team creativity.
Explain the differences between conventional and self-managed teams.
Product Weight Sales Additional Processing Costs P 300,000 lbs. $ 245,000 $ 200,000 Q 100,000 lbs. 30,000 -0- R 100,000 lbs. 175,000 100,000 If joint costs are allocated based on relative weight of...
The projected benefit obligation was $380 million at the beginning of the year. Service cost for the year was $21 million. At the end of the year, pension benefits paid by the trustee were $17...
CVP Modeling project The purpose of this project is to give you experience creating a multiproduct profitability analysis that can be used to determine the effects of changing business conditions on...

Why do some firms choose to use a two-variance analysis instead of a three-variance or a four-variance

Question:

Step by Step Answer:

Among reasons that a firm may use a 2variance instead of ...View the full answer

Cost management a strategic approach

Students also viewed these Management Leadership questions