Advanced Cost Accounting: Favorable Variances

Related BrainMass Solutions

• Material,labour and overhead variances

  Calculate the materials price and usage variances. Indicates whether the variances are favorable or unfavorable. C.

• Techniques for evaluating managerial performance

  Favorable variances are important too. Favorable variances may be able to point to great ideas that could be replicated elsewhere in the organization.

• Overhead Analysis Structures

  Management and cost accounting. Springer, 2013. 2. Rajan, Madhav, Srikant M. Datar, and Charles T. Horngren. Cost Accounting. Pearson Higher Ed, 2015.

• Calculations of Actual Costs Incurred

  Variances Standard Cost Unfavorable Favorable Direct

• Non-variable and variable overhead, and budget direct labor hour

  Is a favorable variance necessarily good? Explain Please see the attachment. The solution explains some questions relating to cost accounting

• Direct Material & Labour Variances

  Formulas Direct Material Price Variances = (Standard Cost - Actual Cost) * Actual Quantity Direct Material Quantity Variances = (Standard Quantity - Actual Quantity) * Standard Cost Direct Labor Rate Variances = (Standard Rate - Actual Rate)*Actual

• Favorable and unfavorable variances

  (Cost Management) //Above, we discussed about the variances analysis, which is mainly examination of the cost variances. In this part, we will firstly discuss about the meaning of favorable and unfavorable variances.

• Should Variances Be Investigated Regardless of if they are Favorable or Unfavorable?

  Then, the discussion gives one reason to study unfavorable and two reasons to study favorable variances. Your response is 310 words and includes a discussion and calculation of cost/benefit and a description of favorable and unfavorable variances.

• Cost Accounting - Variance and Budgets

  A favorable variance occurs when the actual cost is less than the budgeted cost, while an unfavorable variance occurs when the actual cost is greater than the budgeted cost.