cost accounting discussions
post 1
- develop an argument supporting the use of flexible-budget variance analysis to control the costs of activity areas in ABC systems. Evaluate the differences in the application of the variances in the nonmanufacturing and service industries with manufacturing.
- Evaluate the efficacy of overhead cost variances in the nonmanufacturing and service industries on capacity planning and profitability.
post 2
- Justify the method of writing off the production-volume variance to the cost of goods sold, as compared to allocating the variance to work-in-process and finished goods inventories.
- Evaluate the limitations that the production-volume variance has on capacity planning decisions by management, indicating how the impact of such limitations may be minimized.
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