Allana recorded operating data for its Xyza division for the year. The company requires its return to be 10%. Sales P500,000 Controllable margin 90,000 Total average assets 300,000 Fixed costs 30,000 Residual income 50,000 What is the ROI for the year
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.
Allana recorded operating data for its Xyza division for the year. The company requires its return to be 10%.
Sales P500,000
Controllable margin 90,000
Total average assets 300,000
Fixed costs 30,000
Residual income 50,000
What is the
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