Determine the most accurate statement about variances. Unfavorable variances normally have a credit balance in the ledger. Managers attempt to maintain unfavorable variances. O A favorable variance is not always beneficial for an organization. Unfavorable variances normally have a credit balance in the ledger.

Determine the most accurate statement about variances. Unfavorable variances normally have a credit balance in the ledger. Managers attempt to maintain unfavorable variances. O A favorable variance is not always beneficial for an organization. Unfavorable variances normally have a credit balance in the ledger.

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Description: Determine the most accurate statement about variances. Determine the most accurate statement about variances.O Unfavorable variances normally have a credit balance in the ledger.Managers attempt to maintain unfavorable variances.O A favorable varianc

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What...

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Why are unfavorable variances recorded by using debitentries and favorable variances recorded by using creditentries?
When management uses variance reports to evaluate cost control, they look into which of the following? O both variable and unfavorable variances that exceed a predetermined quantitative measure such as a percentage or dollar amount. no variances O unfavorable variances only O favorable variances only
Managers who properly apply the concept called “management by exception” will: * Investigate only favorable variances. Investigate only unfavorable variances. Investigate only variances of a certain size or scope. Always investigate unfavorable and favorable variances regardless of size.
Which of the following statements is true of performance reporting? A. Responsibility reports should focus on the person responsible for unfavorable variances, rather than information. B. Every variance, regardless of magnitude, must be investigated by the managers. C. Managers should not be held accountable for uncontrollable variances. D. Only unfavorable variances in the reports should be explained.
Which of the following statements is false? Standard costs (e.g., how much should be paid for each unit of input) are benchmarks for measuring performance. Managers should investigate only unfavorable variances. Variance analysis enhances responsibility accounting. A variance is the difference between the budgeted amount and actual amount.
Critically detail analyse the variance conditions when ratio analysis cannot be an efficient method for prudent financial decision making. (please use their own wording to avoid from plagirism)
Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or unfavorable. When actual activity consumes more time or money than initially planned, an unfavorable variance exists. However, when actual activity consumes less time or money than initially planned, a favorable variance exists. Note that the terms favorable and unfavorable are used, rather than saying that a variance is good or bad, because until the cause of a variance is discovered, it is not clear whether a variance is either good or bad. Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the actual). If a company calculates that the actual cost for the actual hours worked by employees was $4,300,000, and the amount budgeted for those hours actually worked was $4,800,000, the actual cost for hours worked less the budgeted cost for hours worked is $ This tells you that the actual cost at actual hours worked is less than - v the…
Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or unfavorable. When actual activity consumes more time or money than initially planned, an unfavorable variance exists. However, when actual activity consumes less time or money than initially planned, a favorable variance exists. Note that the terms favorable and unfavorable are used, rather than saying that a variance is good or bad, because until the cause of a variance is discovered, it is not clear whether a variance is either good or bad. Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the actual). If a company calculates that the actual cost for the actual hours worked by employees was $4,300,000, and the amount budgeted for those hours actually worked was $4,800,000, the actual cost for hours worked less the budgeted cost for hours worked is $ 500,000 x. This tells you that the actual cost at actual hours worked is less than…
1. When the total direct labor cost variance is unfavorable, the direct labor rate variance will (must) also be unfavorable. A. True B. False 2. Favorable variances are not analyzed for possible cause. A. True B. False
Gauging the Favorableness of Variances When variances occur, they are described as being either favorable or unfavorable. When actual activity consumes more time or money than initially planned, an unfavorable variance exists. However, when actual activity consumes less time or money than initially planned, a favorable variance exists. Note that the terms favorable and unfavorable are used, rather than saying that a variance is good or bad, because until the cause of a variance is discovered, it is not clear whether a variance is either good or bad. Note: Use the minus sign to indicate negative values (when the budgeted amount is greater than the actual). If a company calculates that the actual cost for materials used was $4,800,000, and the amount budgeted for those materials was $3,400,000, the actual cost for materials used less the budgeted cost for materials used is $ This tells you that the actual cost at actual materials used is greater than -v the budgeted cost at actual hours…
Show how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.
Which of the following is FALSE regarding variances? O A favorable variance, when it occurred, are debited to the related variance account. O Mathematically, an unfavorable variance has a positive value. O Favorable variances occur whenever actual prices or actual usage of inputs are lower than standard prices or standard usage. O A variance is the remaining portion after subtracting the standard cost from the actual cost. Next Previous