Search results
Results from the WOW.Com Content Network
Variance analysis can be carried out for both costs and revenues. Variance analysis is usually associated with explaining the difference (or variance) between actual costs and the standard costs allowed for the good output. For example, the difference in materials costs can be divided into a materials price variance and a materials usage variance.
Sales volume variance can be considered favorable or unfavorable. Causes of sales volume variance include changes in competition and sales prices, changes in consumer desires (i.e. fashion trends over time), and impositions or removals of government trade restrictions. [2]
An important part of standard cost accounting is a variance analysis, which breaks down the variation between actual cost and standard costs into various components (volume variation, material cost variation, labor cost variation, etc.) so managers can understand why costs were different from what was planned and take appropriate action to ...
By function: production, administration, selling and distribution, or research and development. By behavior: fixed, variable, or semi-variable. Fixed costs remain unchanged irrespective of changes in the production volume over a given period of time. Variable costs change according to the volume of production.
Cost–volume–profit (CVP), in managerial economics, is a form of cost accounting. It is a simplified model, useful for elementary instruction and for short-run decisions. It is a simplified model, useful for elementary instruction and for short-run decisions.
Even if the production function variables of profitability and volume were in the model, in practice the calculation can also be carried out in compliance with the cost function. This is the case in models C & T as well as Gollop. Calculating methods differ in the use of either output volume or input volume for measuring the volume of activity.
State. Average Monthly Rate: Minimum Coverage. Average Monthly Rate: Standard Coverage. Average Monthly Rate. Michigan. $151. $522. $481. New Jersey. $120. $390. $360
Suffering a glut in green cars, sales and marketing developed a program to sell the excess inventory. While successful in generating the desired market pull, manufacturing did not know about the promotional plans. Instead, they read the increase in sales as an indication of growing demand for green cars and ramped up production. [3]