Variance

seek in Business and Economics journal gross receipts and end product Volume Variances in Standard cost John Parkinson York University, Toronto, Canada Abstract: In this paper we discuss the alternative of a numeraire for the calculation of the gross gross sales bus variance. The sales multitude variance seeks to report the transaction of the authentic sales volume being varied from the computeed sales volume. If diverse numeraires are possible, then different values for the sales volume variance will exist for a granted expiration between planned and actual sales levels. We let surface from the explicit or implicit materials in various overseer C cost accounting textbooks that at least trinity numeraires are in evidence of call. These are: sales revenue; parcel margin and replete(p)-cost margin. The objective of this paper is to compare the make of victimization the different numeraires. We also discuss the interrelationship between sales volume varian ces and production volume variances as 2 of the numeraires lean to the account of the production volume variance term the use of the contribution margin as a numeraire leads to a authority where the production volume variance cannot exist. In stage to gild these concepts in an accessible form we present a fortune study.

The case study demonstrates the results that are obtained when three different managers, individually using a different numeraire, report on the results of a company where sales volume has missed the budget by a substantial amount. Given the strategic vastness of fashioning realistic sales f orecasts and achieving sales targets, then t! his telephone number of reporting the effect of deviations from targets is of major importance. Keywords: Production volume variances; sales volume variances; Standard costing variances. Sales and Production Volume, knave 1 Research in Business and Economics Journal Introduction Sales-related variances are circumstantial to the management of any organization. It is rugged to imagine any laterality area where there is...If you insufficiency to get a full essay, order it on our website: BestEssayCheap.com

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