Question.2884 - Management Accounting Quote Interpretations
Answer Below:
Quote xxxxxxxxx are xxx explanations xxx author xx this xxxxx is xxxxxxxxxxx that xxxxxxxxx are xxxx a xxxxxxxx point xx controlling xxxxxxxxxx operations xxxxxxxxxx must xxxx beyond xxx variances xx understand xxx they xxxxxxxx Thus xxxxxxxxx only xxxx us xxx difference xxxxxxx actual xxx budgeted xxxxxxx but xx cannot xxxx decisions xxxx on xxx basis xx the xxxxxxx We xxxx to xxxxxxxx the xxxxxx factors xxxxx resulted xx the xxxxxxxx For xxxxxxx Suppose xxx Raw xxxxxxxx Cost xx Units xx X xxx budgeted xx unit xxxx the xxxxx cost xxx X xxx But xxx to xxxxxxxxxxxx price xxxxxxxxx the xxxxxxx cost xx X xxx and xxxx the xxxxx expenditure xx X xxx leading xx a xxxxxxxxxxxx Variance xxx simply xx looking xx the xx are xxxxxx to xxxxxxx the xxxxxx It xx important xx understand xxxx factors xxxxxxxx in xxx variance xxx thus xxxxx this xxxxxxxxxx measures xxx be xxxxx Quote xxxxxxxxxx s xxxx is xxx to xxxxxxxx variances xxx author xx this xxxxx understands xxxx the xxxx objective xx management xx to xxxxxxxx the xxxxx of xxx firm xxx the xxxxxxxxxxxx For xxxxxxx it xxxxx not xx wise xx focus xxxxxx on xxxxxxxxxx the xxxxxx material xxxxx variance xx such x focus xxxxx impair xxxxxxx quality xxxxxxx it xx not xxxxxxxxx to xxxxx off xxxxxxx quality xx order xx reduce xxxxx Another xxxxxxx to xxx above xxxxxxxxx could xx that xxxxxxx the xxxxxxxx expenditure xx Raw xxxxxxxx X xxx estimated xx units xx end xxxxxxx with x cost xx But xxx actual xxxxxxxxxx of xxx product xxx units xxx similarly xxx expenditure xx the xxx material x was xxxx even xxxxxx the xxxxxxxx was xxx the xxxxxx behind xxx same xxx the xxxxxxxxx production xx end xxxxxxx Thus xxx the xxxxx statements xx is xxxx that xxxxxxxxxx s xxxx is xxx to xxxxxxxx variancesMore Articles From Accounting
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