If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project? A. The cost variance is 1.05 B. The cost variance is 5,000 C. The cost variance is 0.95 D. The cost variance is -5,000 Your company has temporarily assigned you to serve as a project manager at a company location outside your home country. While meeting with a vendor your first day on the job, you are presented with a gift. The corporate policy at the headquarters in your home country prohibits employees from accepting these types of gifts. However, as you are new to this location, you believe- but are not sure-that the local policy, as well as local custom may differ. How should you respond? A. Provide a gift of similar value to the vendor at your next meeting. B. Accept the gift but do not tell anyone. C. Respectfully tell the vendor you are not sure of corporate policy, and will need to ask your management before you can accept gifts

If the project's current total earned value (EV) is $100,000 and the actual amount spent (AC) is $95,000, what is the cost variance of the project? A. The cost variance is 1.05 B. The cost variance is 5,000 C. The cost variance is 0.95 D. The cost variance is -5,000 Your company has temporarily assigned you to serve as a project manager at a company location outside your home country. While meeting with a vendor your first day on the job, you are presented with a gift. The corporate policy at the headquarters in your home country prohibits employees from accepting these types of gifts. However, as you are new to this location, you believe- but are not sure-that the local policy, as well as local custom may differ. How should you respond? A. Provide a gift of similar value to the vendor at your next meeting. B. Accept the gift but do not tell anyone. C. Respectfully tell the vendor you are not sure of corporate policy, and will need to ask your management before you can accept gifts

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter10: Standard Costing And Variance Analysis

Section: Chapter Questions

Problem 68P: The management of Golding Company has determined that the cost to investigate a variance produced by...

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The management of Golding Company has determined that the cost to investigate a variance produced by its standard cost system ranges from 2,000 to 3,000. If a problem is discovered, the average benefit from taking corrective action usually outweighs the cost of investigation. Past experience from the investigation of variances has revealed that corrective action is rarely needed for deviations within 8% of the standard cost. Golding produces a single product, which has the following standards for materials and labor: Actual production for the past 3 months follows, with the associated actual usage and costs for materials and labor. There were no beginning or ending raw materials inventories. Required: 1. What upper and lower control limits would you use for materials variances? For labor variances? 2. Compute the materials and labor variances for April, May, and June. Identify those that would require investigation by comparing each variance to the amount of the limit computed in Requirement 1. Compute the actual percentage deviation from standard. Round all unit costs to four decimal places. Round variances to the nearest dollar. Round variance rates to three decimal places so that percentages will show to one decimal place. 3. CONCEPTUAL CONNECTION Let the horizontal axis be time and the vertical axis be variances measured as a percentage deviation from standard. Draw horizontal lines that identify upper and lower control limits. Plot the labor and material variances for April, May, and June. Prepare a separate graph for each type of variance. Explain how you would use these graphs (called control charts) to assist your analysis of variances.
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