(a)
Variances
The variances are used to calculate to the find the variation in actual cost by comparing it to the
Variance Report
The report which provides the details of the actual and budgeted income and expenses along with the variance is called as variance report. It shows the difference between actual and estimated financial results
To describe: The normal industry standard for plants to be considered operating at full capacity.
(b)
To describe: The ideal standard of the company for hoping to achieve.
(c)
To discuss: The reason for the company does not operate a third shift.
(d)
To discuss: The some potential drawback of the midnight shift, and implication that have for variances from standards.
(e)
To describe: Potential sales/marketing disadvantage does the third shift.
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Managerial Accounting: Tools for Business Decision Making
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