COST ACCOUNTING
16th Edition
ISBN: 9781323694008
Author: Horngren
Publisher: PEARSON C
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Textbook Question
Chapter 14, Problem 14.12Q
Show how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.
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Show how managers can gain insight into the causes of a sales-volume variance by subdividing the components of this variance.
Explain why a favorable sales-quantity variance occurs.
Determine the Following:
Sales volume variance
Sales variance
Cost volume variance
Chapter 14 Solutions
COST ACCOUNTING
Ch. 14 - Prob. 14.1QCh. 14 - Why is customer-profitability analysis an...Ch. 14 - Prob. 14.3QCh. 14 - A customer-profitability profile highlights those...Ch. 14 - Give examples of three different levels of costs...Ch. 14 - What information does the whale curve provide?Ch. 14 - A company should not allocate all of its corporate...Ch. 14 - What criteria might managers use to guide...Ch. 14 - Once a company allocates corporate costs to...Ch. 14 - A company should not allocate costs that are fixed...
Ch. 14 - How should a company decide on the number of cost...Ch. 14 - Show how managers can gain insight into the causes...Ch. 14 - How can the concept of a composite unit be used to...Ch. 14 - Explain why a favorable sales-quantity variance...Ch. 14 - How can the sales-quantity variance be decomposed...Ch. 14 - Flexible-budget variance, sales-quantity,...Ch. 14 - Sales-volume, sales-mix, and sales-quantity...Ch. 14 - Cost allocation in hospitals, alternative...Ch. 14 - Customer profitability, customer-cost hierarchy....Ch. 14 - Customer profitability, service company. Instant...Ch. 14 - Customer profitability, distribution. Best Drugs...Ch. 14 - Cost allocation and decision making. Reidland...Ch. 14 - Cost allocation to divisions. Rembrandt Hotel ...Ch. 14 - Cost allocation to divisions. Bergen Corporation...Ch. 14 - Prob. 14.25ECh. 14 - Variance analysis, working backward. The Hiro...Ch. 14 - Variance analysis, multiple products. Emcee Inc....Ch. 14 - Market-share and market-size variances...Ch. 14 - Click here to open your MyFinanceLab Study Plan...Ch. 14 - Customer profitability. Bracelet Delights is a new...Ch. 14 - Customer profitability, distribution. Green Paper...Ch. 14 - Customer profitability in a manufacturing firm....Ch. 14 - Customer-cost hierarchy, customer profitability....Ch. 14 - Allocation of corporate costs to divisions. Cathy...Ch. 14 - Cost allocation to divisions. Forber Bakery makes...Ch. 14 - Prob. 14.36PCh. 14 - Cost-hierarchy income statement and allocation of...Ch. 14 - Variance analysis, sales-mix and sales-quantity...Ch. 14 - Market-share and market-size variances...Ch. 14 - Variance analysis, multiple products. The Robins...Ch. 14 - Customer profitability and ethics. KC Corporation...
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- What is the cause of an unfavorable volume variance? Does the volume variance convey any meaningful information to managers?arrow_forwardWhat is the significance of a production-volume variance?arrow_forwardWhat are some possible reasons for a material price variance? A. substandard material B. labor rate increases C. labor rate decreases D. labor efficiencyarrow_forward
- 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.arrow_forwardCite a specific example of the application of gross profit variance analysis. How will it help the company in its decision making?arrow_forwardYou are required to calculate:i. The sales price variance. ii. The sales volume profit variance. iii. The sales mix variance profit. iv. The sales quantity profit volume variance.arrow_forward
- Based on the attached image, what is the company's sales-volume variance?arrow_forwardWhy are product cost variances (DM, DL, MOH) broken down and separated into price & quantity variance or rate & efficiency variance. What is the purpose and what information do these additional variances provide? Explain in your own words and be specific.arrow_forwardWhich of the following underlying assumptions form(s) the basis for grossprofit variance analysis? A. Sales and costs behave in a linear manner.B. Costs can be categorized as variable.C. All of the choices are assumptions that underlie gross profit variance analysis.D. In multiproduct organizations, the sales mix remains discretionary.arrow_forward
- Which of the following items would be useful to management in deciding whether to investigate the cause of a reported standard cost variance? O Cost-volume-profit analysis. O Simultaneous equations. O Linear regression analysis. O Iso-profit lines. Indifference probability.arrow_forwardDetermine the following: Sales price variance Sales volume variance Sales variance Cost price variance Total gross profit variance Price variancearrow_forwardExplain what is meant by the term management by exception. What is the relationship between the process of standard cost variance analysis and management by exception? Give some examples, positive and negative of management by exception.arrow_forward
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