Cost Variance Analysis Presented by : Edmund C. Cabrera MBA Student Universidad de Manila Definitions STANDARD COSTS – are predetermined or target unit costs of production which should be attained under efficient conditions. It is the amount and costs of direct material‚ direct labor‚ and factory overhead required to produce one unit of finished product. STANDARD COST SYSTEM – is an accounting system which uses standard costs rather than actual costs to account for units as they flow through
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INTRODUCTION Background of Company Luotang Power is a coal-fired power plant located in central China. This company is a subsidiary of China Hua Tong Power (HT Power). The main activity of this company is to generate electricity. Luotang Power operates using a 600 MW coal-fired power plant and sells the generated power to their primary customer‚ the Hubei Provincial Power Company (HPPC). HPPC was the only company in Hubei Province that owned all the power transmission and distribution facilities
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2012 The Price theory of Coca-Cola Company Coca-Cola is a well-recognized soft drink brand in United States. According reports from Coca-Cola in 2012.Coca-Cola Company sells its product around the world in more than 200 countries and has a product portfolio of more than 35‚000 drinks. Based on Interbrain’s best global brand 2011‚ The Coca-Cola brand is worth $74 billion and therefore was the world’s most valuable brand. The market type of the Coca-Cola Company The Coca-Cola Company is a monopoly
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ROI and Variance Analysis ROI and Variance Analysis What are the four major budgets of a health care organization? Briefly discuss each. Describe the four types of responsibility centers‚ including the characteristics of each? The revenue center represents the organizational link in which the activity is appreciated. The cost center represents the organizational link in which products/ services are obtained which generate expenses (costs) with the help of which there can be measured the efficiency
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theory”‚ developed the mean-variance analysis‚ which focuses on creating portfolios of assets that minimizes the variance of returns i.e. risk‚ given a level of desired return‚ or maximizes the returns given a level of risk tolerance. This theory aids the process of portfolio construction by providing a quantitative take on it. It integrates the field of quantitative analysis with portfolio management. Mean variance analysis has found wide applications both inside and outside financial economics. However
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This organisation uses budgets to control the costs for a limit of period by equating what was spent during that time to the master budget. This benefits B.A as they would be observing all their expenses and returns which prevent them from surpassing their budgets. This business uses budgets because it is a valuable tool when evaluating B.A performance and value of their budget. Budgeting is beneficial to B.A as it helps them with planning orientation such as it helps to create a budget plan where
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TABLE OF CONTENTS 1.0 INTRODUCTION 2 2.0 Role of internal control 2 2.1 Management: 2 2.2 Board of Directors: 3 2.3 Auditors: 3 2.4 Staff and junior managers 4 3.0 NEW RULES OF INTERNAL CONTROL 4 4.0 THE GOOD AND THE BAD 10 5.0 RECOMMENDATIONS 12 6.0 REFERENCES 14 1.0 INTRODUCTION Internal control is defined as a process affected by an organization ’s structure‚ work and authority flows‚ people and management information systems‚ designed to help the organization
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STANDARD COSTING VARIANCES Materials Actual Production X X X Vs. Standard Usage Standard Price Actual Usage Actual Production X X X Vs. Standard Usage Standard Price Actual Usage Actual Price Actual Price Total Variance Actual Production X X X Vs. Standard Price Actual Usage Actual Usage Actual Production X X X Vs. Standard Price Actual Usage Actual Usage Price Variance Actual Price Actual Price Standard Price Standard Price Actual Usage
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Table of Contents Table of Contents _____________________________________________ Page 1 Question 1 (Organogram) ______________________________________ Page 2 Question 2 (Case Study of Mr Price Group) ________________________ Page 3 Question 2 2.1 5 External Stakeholders and the corresponding medium that may be used when communicating with these publics External Stakeholders Medium Consumers While they are in the store Suppliers Telephone & Email Community Advertisement
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Mean-Variance Analysis Mean-variance portfolio theory is based on the idea that the value of investment opportunities can be meaningfully measured in terms of mean return and variance of return. Markowitz called this approach to portfolio formation mean-variance analysis. Mean-variance analysis is based on the following assumptions: 1. All investors are risk averse; they prefer less risk to more for the same level of expected return. 2. Expected returns for all assets are known. 3. The
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