significant of variance analysis in cost management.

Q: Production-volume variance formula

A: Variance: It implies to a difference between the actual and standard outcomes. If the actual outcome…

Q: Direct Materials and Direct Labor Variance Analysis

A: a. Determine standard cost per unit Direct material standard cost per unit = Std. number of lbs of…

Q: Explain the meaning of the joint price-quantity variance.

A: Joint price-quantity variance: Variances are the difference between the actual results and the…

Q: hat ty

A: Variance analysis is a summary statement which demonstrate the difference between planned…

Q: explain activity variances and spending variances with example

A: Variance is defined as the difference between the actual and the budgeted or expected amount.…

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: Explain what is meant by the term management by exception. What is the relationship between the…

A: Management by exception: Under this style of management, employees are allowed to take decisions…

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

A: Flexibe-budget variance:

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: The process of creating a formal plan and translating goals into quantitative form is Process…

A: The process of creating a formal plan and translating goals into quantitative forms is known as…

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: Compute the price and efficiency variances of direct materials and direct manufacturing

A: Standard costing  - This is the method of costing where standard is determined and then its compared…

Q: Define the term variance analysis.

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

Q: Cite a specific example of the application of gross profit variance analysis. How will it help the…

A: Variance analysis for any variable enables the entity to break down the variable and establish…

Q: Define direct material variance.

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

Q: Explain and describe the overhead variance.

A: Variance means when the actual cost does not match with the estimated costs. To compute the…

Q: variances

A: Variance means change Variances arise after comparison with standard to Actual.   Types of Variances…

Q: Which method is used to see if a relationship between the cost driver and total cost exists?…

A: Cost drivers means activity units that will cause change in total cost for example, number of…

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: Prepare variance analysis for materials, labor and overhead

A: Variance analysis can be defined as investigation tool which studies the deviation between the…

Q: Can someone give an example of Mean-Variance analysis?

A: Example for mean-variance analysis:

Q: In general, variance analysis is said to provide information about _________ and __________…

A:

Q: Differentiate between variance analysis and sensitivity analysis

A: Managers of small businesses can benefit from both variance and sensitivity analyses when trying to…

Q: Required: the variance analysis for labor.

A: 1. Direct labor Variance = (standard rate x Standard hrs for actual output) - (Actual rate x Actual…

Q: standard cost

A: Standard cost systems are cost accounting systems in which standard is set for each item of cost and…

Q: What is the relationship between management by exception and variance analysis?

A: Management by Exception: Management by exception is the process of finding the deviations in the…

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: 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: Define and explain the relationship between simple variance analysis and flexible variance analysis.

A: Simple variances analysis is the study of  deviations of the actual result against the forecasted…

Q: “Overhead variances should be viewed as interdependent rather than independent.” Give an example.

A: Overhead variance: It refers to that difference amount which is computed by deduction of actual…

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: What is total overhead variance?

A: Overhead means indirect costs incurred in the production and selling of goods. It can be…

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: Standard Product Cost

A: Standard costing is a cost accounting method to calculate estimated costs based on standards set for…

Q: What does the concept of ‘management by exception’ mean and what factors are considered when…

A: Management by exception is a technique used in management information system.

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 :

Q: Variance Analysis

A: [Note: Since you have posted a multi-part question, we will solve the first 3 parts for you. For the…

Q: Define product cost variances.

A: Product Cost variances occur when the standard cost is higher or lower than the actual costs They…