Which of the following variances would not be investigated by a manager following the management by exception principle? OA 10% unfavorable variance in payroll tax expense OA 10% favorable variance in raw materials price OA 10% unfavorable variance in direct labor rates O An unfavorable variance that has increased by 5% in each of the last five months
Which of the following variances would not be investigated by a manager following the management by exception principle? OA 10% unfavorable variance in payroll tax expense OA 10% favorable variance in raw materials price OA 10% unfavorable variance in direct labor rates O An unfavorable variance that has increased by 5% in each of the last five months
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter8: Standard Cost Accounting—materials, Labor, And Factory Overhead
Section: Chapter Questions
Problem 26Q: At the end of the current fiscal year, the trial balance of Big Apple Inc. revealed the following...
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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.
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