Accounting: What the Numbers Mean
11th Edition
ISBN: 9781259535314
Author: David Marshall, Wayne William McManus, Daniel Viele
Publisher: McGraw-Hill Education
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
Chapter 15, Problem 15.28C
Case 15.28
LO 5
Rank the importance of eight variances Assume that you are the production manager of a small branch plant of a large manufacturing firm. The central accounting control department sends you monthly performance reports showing the flexed budget amount, actual cost and variances for raw materials, direct labor, variable
Required:
- Rank the eight variances in descending order of their usefulness to you for planning and controlling purposes. Explain your ranking.
- Given the usefulness ranking in part a, explain how the frequency of reporting and the units in which each variance is reported might make the performance reports more useful.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Who is the head of the Inland Revenue Department in Trinidad and Tobago?
A.
Chairman Board of Inland Revenue
B.
General Manager of the Revenue Centre
C.
Commissioner General of Inland Revenue
D.
Comptroller of Inland revenue
Use the Motor Vehicle Taxable Benefit table below to answer questions 16 and 17.
Motor Vehicles: Annual Taxable Benefit
Original cost of motor vehicle
Age of MV – up to 5 years old
Age of MV – Over 5 years old
(up to 50% private use)
(over 50% private use)
(up to 50% private use)
(over 50% private use)
Up to $300,000
$40,000
$48,000
$30,000
$36,000
Up to $700,000
$50,000
$60,000
$40,000
$48,000
Up to $1,000,000
$75,000
$80,000
$60,000
$65,000
Up to $1,500,000
$90,000
$100,000
$72,000
$80,000
Over $1,500,000
$120,000
$140,000
$98,000
$100,00
Melissa Hines earned an annual salary of $1,050,000 and her employer paid $50,000 per month to an independent landlord for rental of her apartment. She was given a company vehicle that was bought 8 years earlier for $1,100,000. It is estimated that Ms. Hines private usage of the vehicle is 40%. What would be her total emoluments for the year?
A.…
what is the correct option account subjects
Chapter 15 Solutions
Accounting: What the Numbers Mean
Ch. 15 - Prob. 15.1MECh. 15 - Prob. 15.2MECh. 15 - Prob. 15.3MECh. 15 - Prob. 15.4MECh. 15 - Mini-Exercise 15.5 LO 4, 5, 6 Variable overhead...Ch. 15 - Mini-Exercise 15.6
LO 4. 5, 6
Fixed overhead...Ch. 15 - Prob. 15.7ECh. 15 - Prob. 15.8ECh. 15 - Prob. 15.9ECh. 15 - Prob. 15.10E
Ch. 15 - Prob. 15.11ECh. 15 - Prob. 15.12ECh. 15 - Exercise 15.13 LO 4. 5 Direct material...Ch. 15 - Exercise 15.14 LO 4, 5 Direct material...Ch. 15 - Prob. 15.15ECh. 15 - Prob. 15.16ECh. 15 - Exercise 15.17 LO 9 Investment center analysis;...Ch. 15 - Prob. 15.18ECh. 15 - Problem 15.19 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.20 LO 4. 5 Calculate variable cost...Ch. 15 - Problem 15.21 LO 4, 5 Direct labor...Ch. 15 - Problem 15.22 LO 4, 5 Direct labor...Ch. 15 - Problem 15.23 LO 5, 6 Fixed overhead...Ch. 15 - Case 15.25 LO 3 Performance reporting The chair of...Ch. 15 - Case 15.26 LO 3 Flexible budgeting One of the...Ch. 15 - Case 15.27 LO 4 Frequency of performance reporting...Ch. 15 - Case 15.28 LO 5 Rank the importance of eight...Ch. 15 - Case 15.29 LO 4. 5 Direct material variances-the...Ch. 15 - Case 15.30 LO 5 Evaluate the effects of erroneous...Ch. 15 - Prob. 15.31CCh. 15 - Case 15.32 The planning and control environment:...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Predetermined overhead rate for the next period should be?arrow_forwardSubject: financial accounting questionarrow_forward1. Allocate the joint cost to the Detergent and the Softener using the following:a. Sales value at split-off method b. NRV method 2. Should Carichem have processed each of the products further? What effect does theallocation method have on this decision?arrow_forward
- A gratuity is taxable in all of the following situations except when: A. The gratuity is paid at the end of the contract period, but there is no termination of employment. B. Payment is made through the annual budget of certain government entities or statutory bodies. C. The amount paid is considered by the contractor General to be a periodic payment D. The payment is made in lieu of a pension and it is in the form of a lump sum paid out of the consolidated fund.arrow_forwardHelparrow_forwardAccounting questionarrow_forward
- Opal works for Clarendon Ltd. in Jamaica. She received her notice of assessment on April 10, and was in disagreement with the revenue calculation. She called her local inland revenue department on April 20, to seek clarification on the matter and to raise a formal objection. The inland revenue department refused to look into her objection. What could be a reason why the revenue department did not look into Opal’s objection? A. The revenue calculation was based on reports from her employer, so it must be accurate B. Tax payers are not allowed to raise objections C. All formal objections to assessment must be done in writing D. She contacted the inland revenue department after the stipulated time for an objectionarrow_forward1. Allocate the two support departments’ costs to the two operating departments using thefollowing methods:a. Direct methodb. Step-down method (allocate HR first) c. Step-down method (allocate IS first) d. The Algebraic method. 2. Compare and explain differences in the support-department costs allocated to eachproduction department. 3. What approaches might be used to decide the sequence in which to allocate supportdepartments when using the step-down method?arrow_forwardAnswer? Financial accountingarrow_forward
- Opal works for Clarendon Ltd. in Jamaica. She received her notice of assessment on April 10, and was in disagreement with the revenue calculation. She called her local inland revenue department on April 20, to seek clarification on the matter and to raise a formal objection. The inland revenue department refused to look into her objection. What could be a reason why the revenue department did not look into Opal’s objection? A. The revenue calculation was based on reports from her employer, so it must be accurate B. Tax payers are not allowed to raise objections C. All formal objections to assessment must be done in writing D. She contacted the inland revenue department after the stipulated time for an objectionarrow_forwardwhat is the correct optionarrow_forwardFinancial accountingarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage Learning
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning
Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Managerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
Managerial Accounting: The Cornerstone of Busines...
Accounting
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Cengage Learning
Financial & Managerial Accounting
Accounting
ISBN:9781337119207
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Cengage Learning
Principles of Cost Accounting
Accounting
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Managerial Accounting
Accounting
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:South-Western College Pub
What is variance analysis?; Author: Corporate finance institute;https://www.youtube.com/watch?v=SMTa1lZu7Qw;License: Standard YouTube License, CC-BY