Managerial accounting chapter 20 production cost variance anal

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The costs of normal spoilage are typically included as component of the costs of good units manufactured, because good units cannot be made without also make some units that are spoiled. The result is that students are more engaged with course content, can better prioritize their time, and come to class ready to participate. The choosing of goals, predicting results under various ways of achieving those goals, and then deciding how to attain the desired goals. Spoilage is units of production that do not meet the specifications required by customers for good units and that are discarded or sold at reduced prices. Results in duplication of activities. Flexible budget, variances and management control: It is theoretical, since it does not allow for any plant maintenance, shutdowns etc.

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MAC 2 Summary - Samenvatting Management accounting & control 2

Understanding the reasons for any difference between actual results and budgeted results is an important part of management by exception, which is the practice of concentrating on areas not operating as expected and placing less attention on areas operating as expected. In contrast, when actual rates are used, the user department will not know the rates charged until the end of the period. Cost smoothing is a costing approach that uses broad averages to uniformly assign the cost of resources to cost objects when the individual products, services or customers in fact use those resources in a nonuniform way. Some companies design their management control system around the concept of the balanced scorecard. The internal business process perspective comprises three principal sub processes:


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