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Health Care Accounting: Problem with traditional variance analysis

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The major problem with traditional variance analysis is that it focuses on trying to assign blame for spending more than the budgeted amount. True or false? Explain.

Is management control a clear-cut area based on generally accepted principles or one that relies to a greater extent on common sense and flexibility?

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This posting gives you in-depth insight into problems with traditional variance analysis in the terms of health care accounting. References are provided for this 200 word response.

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Health Care Accounting

The major problem with traditional variance analysis is that it focuses on trying to assign blame for spending more than the budgeted amount. True or false? Explain

False. Variance analysis explains the difference between actual costs and standard costs. The point is that variance analysis helps the management to get a good understanding of the present costs and control future costs. It helps explain the difference ...

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