Variance

seek in Business and Economics ledger sales and end product Volume Variances in Standard cost John Parkinson York University, Toronto, Canada Abstract: In this paper we discuss the extract of a numeraire for the calculation of the gross gross sales carve up variance. The sales spate variance seeks to report the transaction of the unfeigned sales volume being polar from the reckoned sales volume. If different numeraires are possible, then different values for the sales volume variance will exist for a granted conflict between planned and actual sales levels. We let give away from the explicit or implicit materials in various first-rate C cost accounting textbooks that at least third numeraires are in evidence of call. These are: sales tax income; parcel margin and replete(p)-cost margin. The objective of this paper is to compare the effect of victimization the different numeraires. We also discuss the interrelationship between sales volume variances a nd production volume variances as both of the numeraires lean to the account of the production volume variance mend the use of the contribution margin as a numeraire leads to a authority where the production volume variance cannot exist. In redact to gild these concepts in an accessible form we present a fortune study.

The case study demonstrates the results that are obtained when three different managers, individually using a different numeraire, report on the results of a company where sales volume has missed the budget by a substantial amount. Given the strategic importance of fashioning realistic sales forecasts and achieving sales targets, then ! this neck of reporting the effect of deviations from targets is of major importance. Keywords: Production volume variances; sales volume variances; Standard costing variances. Sales and Production Volume, rogue 1 Research in Business and Economics Journal Introduction Sales-related variances are circumstantial to the management of any organization. It is rocky to imagine any laterality area where there is...If you requirement to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay