Which method is used to see if a relationship between the cost driver and total cost exists? scatter plot variance analysis outlier account analysis

Q: Why do we need to have a "base" for the computation of different types of variances under gross…

A: Gross Profit: It is calculated by subtracting operating expenses from the operating income for the…

Q: Determine the following: Price-Quantity variance Cost variance Cost-Quantity variance

A: A) Price quantity variance =   ( Units sold in 2021-units sold in 2020)/ Rate per unit of 2020…

Q: Describe the difference between a direct materials efficiency variance and a variable manufacturing…

A: Variable Cost:The cost which fluctuates on the basis of the output level produced. The variable cost…

Q: How do you make a decision in case of special order? Explain. Use examples if required.

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: etermine the following: Total material price variance Total material usage (quantity) variance Labor…

A: Variable overhead refers to the expenses which fluctuate with the change in the number of goods or…

Q: significant of variance analysis in cost management.

A: Variance analysis is a tool in cost management to compare and analyze variations in budgeted costs…

Q: Give the general formulas for determining cost and efficiency variances.

A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…

Q: The difference between actual Cost and standard cost is known as: Variance Profit Differential Cost

A: Standard Cost is the estimated cost expected to be incurred by the company for a particular period…

Q: A company using direct costing in its performance evaluation would normally include the following…

A: The answer is stated below:

Q: What is the meaningful total variance for performance evaluation purposes?

A: Flexible budget: A flexible budget is a budget prepared by the company for effective evaluation of…

Q: 1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting…

A: Variance analysis is one of the important technique of management accounting analysis, under which…

Q: Create a narrative explanation for the variances. Create a scenario, context, or circumstance that…

A: Variance is the difference between two figures. One figure is the actual and another one is the…

Q: Describe how flexible-budget variance analysis can be used in the control of costs of activity…

A: Flexibe-budget variance:

Q: What is the cost volume variance under 4-way analysis?

A: Cost volume variance shows difference in actual costs and budgeted costs due to difference in number…

Q: The performance evaluation of a cost center is typically based on its a. sales volume variance. b.…

A:

Q: How does the static budget affect the cost and efficiency variances?

A: Definition:   Static budget: Static budget is a master budget that is prepared for only one level of…

Q: The performance evaluation of a cost center is typically based on its sales volume variance. ROI.…

A: A performance evaluation system is a tool in the hands of the management which is used for periodic…

Q: What are the relations among standard costs, flexible budgets, variance analysis, and management by…

A: Budgetary control focus on profits maximization of the enterprise and to accomplish this purpose,…

Q: The variance analysis is used   Ratio Analysis Standard costing Budgetary control Marginal costing

A: Variance analysis is used to estimate the difference between the expected value and the actual…

Q: Find material price variance

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: Why are product cost variances (DM, DL, MOH) broken down and separated into price & quantity…

A: Direct Material Variance Materials Price Variance- A variance which shows the difference between…

Q: The cost price variance is

A: Cost price variance refers to the difference between the actual cost and standard cost of units.…

Q: Topic: Standard Costing and Variance Analysis Question: Create a concept map which discusses on the…

A: Standard Costing and Variance Analysis Always Standard  compared with Actual Result either…

Q: Which of the following items would be useful to management in deciding whether to investigate the…

A: Standard costs are the budgeted costs related with the production, manufacturing and selling of…

Q: How is the fixed overhead volume variance different from the other variances?

A: Variance:  Variance refers to the difference level in the actual cost incurred and standard cost.…

Q: Which of the following set of terms describes the same type of variance?       Price variance, rate…

A: The variance is calculated as difference between the actual results and standard output.

Q: How can the sales-quantity variance be decomposed further?

A: Sales quantity variance identifies the difference between budgeted contribution margin based on…

Q: (b) Explain the reasons why Carad Co would be interested in the material price planning variance and…

A: The variations between predicted and actual results of a manufacturing process or other commercial…

Q: Compute overhead variances using a three-variance approach.

A: 1. Budgeted variance 2. Volume variance 3. Overhead variance

Q: Explain why the quantity purchased (PQ) is used in computing the direct-material purchase price…

A: Material Purchase Price Variance: Material price variance occurs when the price expected to purchase…

Q: Define cost variance.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: Complete the standard cost variance analysis

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Which of the following is the basic purpose of a responsibility accounting?a. variance analysisb.…

A: Definition: Responsibility accounting: The management of responsibility centers by the means of…

Q: To reconcile budgeted profit to actual profit under marginal costing, which variances must be…

A: Marginal Costing is a method of costing, where the marginal cost, the variable cost is charged to…

Q: a. Break down the material cost variance into different related variances: price variance, usage…

A: Variance analysis: It is the technique in budgeting that allows for analysis of the variances…

Q: What types of variances are found on cost center reports? Explain what each variance is measuring…

A: The variances found in the cost center report are determined by measuring actual performance against…

Q: In performing Variance Analysis for Direct Material costs, the variances include Price and Rate…

A: While performing Variance analysis for Direct Material Costs include Direct Material Price Variance…

Q: in preparing variance analysis for both variable overhead and fixed overhead costs, both include…

A: The answer for the theory question on Spending variances is discussed hereunder :

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.