gear involves many complex and specialized activities that, before now, have lacked of organization or procedural direction. The production manger has considered applying a systematic costing system to improve on efficiency of production, and he wants your advice about activity-based costing(ABC). However, while the production manager wants your advice, he argued that interrupting the existing costing system would be a detriment to the factory. In contrast, the entry-level accountant believes an ABC system would in fact assist the company more effectively in identifying the costs and how to actually regulate the costs. Role play as either yhe production manager or the entry-level accountant to convince the other person to agree with your stance.
gear involves many complex and specialized activities that, before now, have lacked of organization or procedural direction. The production manger has considered applying a systematic costing system to improve on efficiency of production, and he wants your advice about activity-based costing(ABC). However, while the production manager wants your advice, he argued that interrupting the existing costing system would be a detriment to the factory. In contrast, the entry-level accountant believes an ABC system would in fact assist the company more effectively in identifying the costs and how to actually regulate the costs. Role play as either yhe production manager or the entry-level accountant to convince the other person to agree with your stance.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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CORE Fitness Inc. is a high-end athletic gear manufacturer. The production of gear involves many complex and specialized activities that, before now, have lacked of organization or procedural direction. The production manger has considered applying a systematic costing system to improve on efficiency of production, and he wants your advice about activity-based costing(ABC). However, while the production manager wants your advice, he argued that interrupting the existing costing system would be a detriment to the factory. In contrast, the entry-level accountant believes an ABC system would in fact assist the company more effectively in identifying the costs and how to actually regulate the costs.
Role play as either yhe production manager or the entry-level accountant to convince the other person to agree with your stance.
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