Question.2884 - Management Accounting Quote Interpretations
Answer Below:
Quote xxxxx Variances xxx not xxxxxxxxxxxx rdquo 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 xxxxx Management xxxxx s xxxx is xxx to xxxxxxxx variances xxxxx The xxxxxx of xxxx quote xxxxxxxxxxx that xxx real xxxxxxxxx of xxxxxxxxxx is xx maximize xxx value xx the xxxx for xxx stakeholders xxx example xx might xxx be xxxx to xxxxx solely xx minimizing xxx direct xxxxxxxx price xxxxxxxx if xxxx a xxxxx would xxxxxx product xxxxxxx Usually xx is xxx advisable xx trade xxx product xxxxxxx in xxxxx to xxxxxx costs xxxxxxx example xx the xxxxx statement xxxxx be xxxx suppose xxx budgeted xxxxxxxxxxx of xxx Material x was xxxxxxxxx at xxxxx of xxx product xxxx a xxxx of xxx the xxxxxx production xx end xxxxxxx was xxxxx and xxxxxxxxx the xxxxxxxxxxx on xxx raw xxxxxxxx X xxx Thus xxxx though xxx variance xxx but xxx reason xxxxxx the xxxx was xxx increased xxxxxxxxxx of xxx product xxxx for xxx above xxxxxxxxxx it xx said xxxx ldquo xxxxxxxxxx rsquo x goal xx not xx minimize xxxxxxxxx rdquoMore Articles From Accounting
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