and for the budget to be functional‚ an organization must stick to the budget very closely. No matter how closely a budget is followed‚ there will be variances. Organizations can expect such variances and be able to work such situations into budgetary constraints. This paper assesses certain situations in which budgeting‚ forecasting‚ and variance interact. Managing the Budget within the Forecast According to Cleverly & Cameron‚ (2007‚ p. 331)‚ when management is done by many different people
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in the mass reproduction of instructional materials. AMG is organized into a number of production departments‚ each of which is responsible for a particular stage of the production process‚ such as copyediting‚ typesetting‚ printing‚ and binding. An engineering department provides technical assistance to the various production units. Ralph Davis‚ owner and manager of AMG‚ has made a concentrated effort to provide a quality product at a competitive price with delivery on the promised due date.
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2 Discussion 2 Costing method & purpose of variance analysis 2 Key findings 3 Material price variance 3 Material usage variance 3 Labour rate variance 4 Labour efficiency variance 5 Variable overhead variance 5 Fixed overhead expenditure variance 6 Fixed overhead volume variance 6 Variable selling and distribution variance 6 Sales variance 7 Responding to publicity 7 Conclusion 8 Appendix 1: Key findings of variance analysis 9 Appendix 2: Profit Magin‚ Mark-up and
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- Break even sales volume Profit or loss at Rs. 46 lakh sales Sales to earn a profit of Rs. 5 lakh. (b) Calculate Direct Material Cost Variances Direct Material usage variance and Direct Material Price Variance from the following information : Finished production during the period 1000 units Opening Stock of material 1000 kg. Closing Stock of material 2000 kg.
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margin/contributions variances | | | | | | | actual sales made this period | | | standard mix proportion is: | | | actual sales at standard mix | | | | | | | | | | | | | budgeted sales | | | | budgeted sales margin | | | =budgeted sales revenue | | | | | | | | | | | | | actual sales | | | | actual sales margin | | | | =actual sales revenue | | | | | | | | | | | | | * * total sales margin variance | | | |
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products are based on costumer’s specification‚ and therefore each product is unique. Process costing can not be used under our present set-up. Possible reasons for cost differences between actual and standard costs under Conley’s system: a. Materials Price and Usage Differences b. Labor Rate Differences c. Labor Efficiency Difference d. Production Volume Difference Standard Cost are usually develop from previous year’s experiences and some adjustments from each department’s managers If
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Bangladesh Open University CEMBA/CEMPA Program Semester 122 Course : Management and Organization Submit by : September 20‚ 2013 Instructions for Assignment Submission 1. Assignments must be submitted on A4 size paper in own hand writing. 2. Completed cover must be used on the top of each assignment (For specimen cover page‚ see page-3 of the Semester Calendar) 3. Assignments must be submitted to the coordinator of the study center you are attached with. 4. Spiral binding must be avoided
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1. The direct materials quantity standard should A) exclude unavoidable waste. B) exclude quality considerations. C) allow for normal spoilage. D) always be expressed as an ideal standard. Use the following to answer questions 2-4: Stiner Company has a materials price standard of $2.00 per pound. Five thousand pounds of materials were purchased at $2.20 a pound. The actual quantity of materials used was 5‚000 pounds‚ although the standard quantity allowed for the output
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Analysis of total costs. 5) Build a Spreadsheet: Construct an Excel spreadsheet to solve all of the preceding requirements. Show how the solution will change if the following data change: the April 1 work in process costs were $27‚000 for direct material and $5‚000 for conversion. 1. | | Physical Units | | Work in process‚ April 1 | 10‚000 | | Units started during April | 100‚000 | | Total units to account for | 110‚000 |
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022178 28‚337.6613/120 units = 236.147177 16‚881.4516/150 units = 112.543011 Profit per cabinet Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 780 – 160 - 240 – 677.022178 = - 297.022178 (loss) Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 570 – 130 – 200 – 236.147177 = 3.852823 (profit) Selling price – material cost/cabinet – labor cost/cabinet - cost per cabinet = 450 – 100 – 160 – 112.543011 = 77.456989 (profit) Total
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