Questions from Cost Management

Q: List causes that could lead to a variable overhead efficiency variance.

List causes that could lead to a variable overhead efficiency variance.

Q: List causes that could lead to a fixed overhead spending variance.

List causes that could lead to a fixed overhead spending variance.

Q: List causes that could lead to a fixed overhead production volume variance

List causes that could lead to a fixed overhead production volume variance.

Q: Would the choice of denominator level affect the amount of the fixed

Would the choice of denominator level affect the amount of the fixed factory overhead budget variance? Fixed overhead production volume variance? Explain.

Q: What are the justifications for using practical capacity as the denominator volume

What are the justifications for using practical capacity as the denominator volume when calculating the fixed overhead application rate?

Q: Why do some firms choose to use a two-variance analysis

Why do some firms choose to use a two-variance analysis instead of a three-variance or a four-variance analysis of the total overhead cost variance for the period?

Q: Create an Excel spreadsheet for Brief Exercise 12-20 and demonstrate

Create an Excel spreadsheet for Brief Exercise 12-20 and demonstrate that the PV of the depreciation deductions, when the income tax rate is 40%, is $3,218 (rounded to the nearest dollar). Given an af...

Q: What is productivity? What does it measure?

What is productivity? What does it measure?

Q: “A productivity measure such as machine-hour productivity is more

“A productivity measure such as machine-hour productivity is more important in a JIT environment than in a non-JIT environment.” Do you agree, and why or why not?

Q: Which of the following statements is true? a. The

Which of the following statements is true? a. The lower the partial productivity ratio, the greater the productivity. b. Productivity improves when partial productivity increases. c. Prices of inpu...