Ralston Dairy gathered this data about the two products that it produces: Products Current Sales Value Estimated Added Processing Costs Sales Value If Processing Further Frozen yogurt $8,200 $2,100 $11,300 Ice cream 12,100 7,100 18,400 Which of the products should be processed further? Frozen Yougurt because profit increase by $???
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.
Ralston Dairy gathered this data about the two products that it produces:
| Products | Current Sales Value |
Estimated Added Processing Costs |
Sales Value If Processing Further |
||||||
| Frozen yogurt | $8,200 | $2,100 | $11,300 | ||||||
| Ice cream | 12,100 | 7,100 | 18,400 |
Which of the products should be processed further?
Frozen Yougurt because profit increase by $???
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