volume variance

Q: The Purchasing Agent in a firm would be most likely to be held responsible for which of the…

A: Variances analysis involves determining of deviations if any by comparing the actual results with…

Q: Contribution margin per unit is the amount by which a products unit selling price exceeds its…

A: Contribution margin:- Contribution margin Indicates how much money is left after variable costs are…

Q: When absorption costing is used a. management may be tempted to overproduce in a given period in…

A: Absorption costing is a method of calculating the cost of a product or enterprise by taking into…

Q: Sales volume variances are attributable to differences between planned and actual activity volumes,…

A: Sales volume variances are a component of variance analysis used in cost and performance accounting.…

Q: The sales volume variance is the difference between the OA. actual results and the expected results…

A: A metric used in variance analysis to assess the discrepancy between the actual and predicted sales…

Q: Which statement may not always hold true? A. Increase in the units sold always lead to unfavorable…

A: In the given question, Option B - "Increase in Sale Price will always lead to favorable sales…

Q: Examine the main reasons why manufacturing companies are more sensitive to material price variances,…

A: (a) The main reasons why manufacturing companies are more sensitive to material price variances, as…

Q: Beyond meaning good or bad for business, can you please explain the mechanics of favorable and…

A: The discrepancy between budgeted and actual figures is referred to as variance in accounting.…

Q: Prepare an analysis of the sales quantity and unit price factors  did the price decrease generate…

A: Sales quantity factor = (Actual Quantity - planned Quantity) * Planned Sales Price Sales quantity…

Q: Total operating income variance means the difference between the actul operating inccome and the…

A: The first level breakdown of the total operating income variance is the static budget variance for…

Q: Calculation of profit change from changes in sales price, sales volume, variable costs, or fixed…

A: This question deals with profit change from changes in sales price, sales volume, variable costs, or…

Q: Sales commissions incurred based on units of product sold during a given period is an example of a…

A: The product costs are the cost that are incurred to produce a product directly or indirectly.

Q: Is this statement true or false? Can you please explain in detail. There is a difference between…

A: Firstly let us understand what is the theoretical production capacity is the optimum production…

Q: Why is variable costing not in compliance with generally accepted accounting principles? a. Fixed…

A: The generally accepted accounting principles are following the absorption method for the valuation…

Q: When selling prices and inventory costs are stable, a decrease in units sold would result to _sales…

A: Varaince is the difference of actual results and budgeted data.

Q: Of the several uses of standard costing, one of the most controversial is using these standards for…

A: In order to assess performance effectiveness, a cost sheet based on projected values is compared…

Q: The difference between sales price per unit and variable cost per unit is the:   Multiple Choice…

A: The objective of the question is to identify the term that represents the difference between the…

Q: he following sentences relate to achieving the financial goal of cost minimization. Which of the…

A: Cost minimization is a concept by which producers try to figure out how costs should be reduced.…

Q: cost variance

A: Variance analysis plays a key role in the functioning of any company. It lets you identify key areas…

Q: Considering the variance analysis, which of the following statements is true?

A: Variance analysis is the analysis which is the analysis only possible when the company has a…

Q: S1: Cost price variance is computed by deducting cost of sales this year at last year's cost price…

A: Cost Price Variance is that which shown the difference between the Actual cost of sales &…

Q: Although there are many reasons to this concern, one of the general reasons in gross profit variance…

A: Introduction: Sales volume variance : This metric measures the deviations of the actual number of…

Q: Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies…

A: The correct answer is option D : Unfavorable varianceThe negative discrepancy between actual…

Q: Fluctuations in unit volume, changes in unit price or unit cost of goods sold and modifications in…

A: The scenario mentions three potential changes that can occur within a business:Fluctuations in unit…

Q: Cost-volume-profit-analysis can be used to determine expected income from predicted sales and cost…

A: Cost volume profit analysis -   generally cost volume profit analysis is used to determine the…

Q: 1. Which of the following shows the degree of operating leverage? The percentage change in the sales…

A: The degree of financial leverage (DFL) is a financial metric that measures the sensitivity of a…

Q: Find the values of the missing items (a) through (x). Assume the actual sales volume equals actual…

A: Activity variances are those which are determined to show the differences between the values of…

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.