A company currently in the 3rd month of a 2 year project. Ihe financial committee would like to h a cost status report. At this stage of the project there is an estimated planned value of 37500. The rate of performance is determined at 95% and the current costs have accumulated to 400000. Determine the Budget at completion)
A company currently in the 3rd month of a 2 year project. Ihe financial committee would like to h a cost status report. At this stage of the project there is an estimated planned value of 37500. The rate of performance is determined at 95% and the current costs have accumulated to 400000. Determine the Budget at completion)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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