The sales mix factor shows a variance of
Chapter1: Financial Statements And Business Decisions
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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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The sales mix factor shows a variance of
Transcribed Image Text:National Co. manufactures three consumer producs, X, Y, and Z Sales and other information
related to the said products are as follows:
Unit Price
P10
P8
Cost of Sales
P120,000
P140,000
P22,500
2020
Units
Total Sales
15,000
20,000
5,000
P150,000
P160,000
P30,000
Y
P6
Units Price
Cost of Sales
P180,000
P150,000
P16,000
2021
Units
Total Sales
X
Y
20,000
20,000
4,000
P12
P9
P240,000
P180,000
P20,000
P5
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