When management uses variance reports to evaluate cost control, they look into which of the following? O both variable and unfavorable variances that exceed a predetermined quantitative measure such as a percentage or dollar amount. O no variances O unfavorable variances only O favorable variances only

When management uses variance reports to evaluate cost control, they look into which of the following? O both variable and unfavorable variances that exceed a predetermined quantitative measure such as a percentage or dollar amount. O no variances O unfavorable variances only O favorable variances only

Name: When management uses variance reports to evaluate cost control, they
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Description: When management uses variance reports to evaluate cost control, they look into which of thefollowing?O both variable and unfavorable variances that exceed a predetermined quantitative measure such as apercentage or dollar amount.no variancesO unfavo

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 3PA: What makes a variance favorable? Give an example of a favorable variance involving materials. What...

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(Appendix 10A) Which of the following items describes practices surrounding the recording of variances? a. All inventories are typically carried at standard. b. Unfavorable variances appear as debits. c. Favorable variances appear as credits. d. Immaterial variances are typically closed to Cost of Goods Sold. e. All of these.
What is the cause of an unfavorable volume variance? Does the volume variance convey any meaningful information to managers?
What makes a variance favorable? Give an example of a favorable variance involving materials. What makes a variance unfavorable? Give an example of an unfavorable variance involving labor.
This variance is the difference involving spending more or using more than the standard amount. A. favorable variance B. unfavorable variance C. no variance D. variance
This variance is the difference involving spending less, or using less than the standard amount. A. favorable variance B. unfavorable variance C. no variance D. variance
The budget variance for variable production costs is broken down into quantity and price variances. Explain why the quantity variance is more useful for control purposes than the price variance.
Acme Inc. has the following information available: A. Compute the material price and quantity, and the labor rate and efficiency variances. B. Describe the possible causes for this combination of favorable and unfavorable variances.
What causes an unfavorable variance?
When might an unfavorable variance be a good outcome?
Does the volume variance convey any meaningful information to managers?
During the control function, the measurements taken of the performance must be accurate enough to see _______________________________. only positive results deviations and variances the primary focus only the negative results
What two factors must be considered when breaking down a variance into its components?