i) ii) a) b) d) explain the meaning of the term/technique, give two examples of its application, explain some of the practical limitations of which users should be aware with regard to the term/technique. Indirect costs Equivalent units Contribution Direct material yield variance
i) ii) a) b) d) explain the meaning of the term/technique, give two examples of its application, explain some of the practical limitations of which users should be aware with regard to the term/technique. Indirect costs Equivalent units Contribution Direct material yield variance
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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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Question
![se
III)
a)
b)
C)
d)
explain the meaning of the term/technique,
give two examples of its application,
explain some of the practical limitations of which users
should be aware with regard to the term/technique.
Indirect costs
Equivalent units
Contribution
Direct material yield variance](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F017a79a2-e9cc-4282-96bc-91c5b4221e03%2Fb17a660c-57ab-4b00-8a39-ec8d62e6d762%2F5v7c5bw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:se
III)
a)
b)
C)
d)
explain the meaning of the term/technique,
give two examples of its application,
explain some of the practical limitations of which users
should be aware with regard to the term/technique.
Indirect costs
Equivalent units
Contribution
Direct material yield variance
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