22. If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will A) vary with sales revenue. B) vary with production. C) vary with unit sales. D) be constant.
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
22. If an industrial firm uses the units-of-production method for computing
A) vary with sales revenue.
B) vary with production.
C) vary with unit sales.
D) be constant.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
