1. What is meant by the total operating-income variance for a given accounting period? What alternative names are there to describe this variance.2. What would be a first-level breakdown of the total variance described above in (1)?3. How can the total flexible-budget variance be broken down (i.e., what are the constituent parts of this total variance)?
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.
1. What is meant by the total operating-income variance for a given accounting period? What alternative names are there to describe this variance.
2. What would be a first-level breakdown of the total variance described above in (1)?
3. How can the total flexible-
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