perspective‚ a variance that is due to a change in activity is very different from a variance that is due to changes in prices and changes in how effectively resources are managed. A variance of the first kind requires very different actions from a variance of the second kind. Consequently‚ these two kinds of variances should be clearly separated from each other. When the budget is directly compared to the actual results‚ these two kinds of variances are lumped together. 9-5 An activity variance is the
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First Six-Months Price Variance Efficiency Variance Sales-Volumn Variance AQ*AP AQ*SP SQ*SP Static Q*SP Raw Materials 590000*3.867=2281000 79000F 590000*4=2360000 104000U 188000*3*4=2256000 144000F 200000*3*4=2400000 Direct Labor 400000*11=4400000 $- 400000*11=4400000 264000U 188000*2*11=4136000 264000F 200000*2*11=4400000 Spending Variance Efficiency Variance Never a Variance Actual Input Quantity*AR Actual
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Question 1: Using budget data‚ how many motors would have to be sold for Waltham Motors Division to breakeven? In order to calculate the breakeven point‚ we use the following equation and budget data: Breakeven Sales*Unit Price-Unit Variable Cost= Fixed Costs Breakeven=Fixed CostsUnitary Price-Unitary Variable Cost Breakeven point=260‚000864000/18000-512800/18000=13‚226 units Q2. Using budget data‚ what was the total expected cost per unit if all manufacturing and shipping overhead (both
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frontier construction Step 1. Variance/covariance matrix‚ σρσ The expected return and variance for the portfolio are: You can think of the variance as the “weighted average” of all the covariances‚ σiσjρij where the weights are xi and xj. Of course‚ the variance terms are special cases of the covariances when i=j‚ and ρij=1. You can calculate the portfolio variance in the spreadsheet in many different ways. The way I do it is to first calculate the variance/covariance matrix‚ σρσ whose entries
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samples which is tabulated below: Descriptive Statistics | Current | Proposed | Mean | 75.06557 | 75.42623 | Standard Error | 0.505094 | 0.32091 | Median | 76 | 76 | Mode | 76 | 76 | Standard Deviation | 3.944907 | 2.506385 | Sample Variance | 15.5623 | 6.281967 | Kurtosis | -0.06933 | 0.58694 | Skewness | -0.22053 | -0.28749 | Range | 19 | 13 | Minimum | 65 | 69 | Maximum | 84 | 82 | Sum | 4579 | 4601 | Count | 61 | 61 | Analysis of descriptive statistics shows that
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Chapter 14 Factor analysis 14.1 INTRODUCTION Factor analysis is a method for investigating whether a number of variables of interest Y1 ‚ Y2 ‚ : : :‚ Yl‚ are linearly related to a smaller number of unobservable factors F1‚ F2‚ : : :‚ Fk . The fact that the factors are not observable disquali¯es regression and other methods previously examined. We shall see‚ however‚ that under certain conditions the hypothesized factor model has certain implications‚ and these implications in turn
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revenues‚ why is their bottom line less than half of what they had budgeted? Variance Analysis Report In order to perform a variance analysis report Jenkins calculated the actual revenues and expenses and found the difference which was $296‚610 in profits. Then Jenkins did the same with budgeted values and found the budgeted profits to be $606‚350. The variance amount in turn is $309‚960 under budget. Also‚ the variance amount for revenues is $32‚100. This number is favorable due to the fact that
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to polar coordinate Thus Mean By symmetry if g(x) is odd function g-x=-g(x) then -abgxdx=0 Variance Notation CDF is standard Normal CDF by symmetric ‚CDF ‚ ‚ All the odd moment of standard normal are zero. However‚ even moment is not easy to calculate by integral (Symmetry) Then we say Most of Statistics books will write the pdf then explain the mean and variance but it is not intuitive. Standardization Find PDF of CDF: The PDF is derivative of the CDF
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the resulting variances will be assigned to the cost of goods sold. If the variances are significant‚ they should be prorated to the cost of goods sold and to the inventories. Standard costing and the related variances is a valuable management tool. If a variance arises‚ management becomes aware that manufacturing costs have differed from the standard (planned‚ expected) costs. * If actual costs are greater than standard costs the variance is unfavorable. An unfavorable variance tells management
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MULTIPLE CHOICE QUESTIONS In the following multiple choice questions‚ circle the correct answer. 1. Which of the following provides a measure of central location for the data? a. standard deviation b. mean c. variance d. range Answer: b 2. A numerical value used as a summary measure for a sample‚ such as sample mean‚ is known as a a. population parameter b. sample parameter c. sample statistic d. population mean Answer: c 3. Since
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