Questions from Management Accounting


Q: Embutidos Vallina SA has two direct-cost categories: direct materials

Embutidos Vallina SA has two direct-cost categories: direct materials and direct manufacturing labor. Its single indirect-cost category (manufacturing overhead) is allocated on the basis of machine-ho...

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Q: The 4-variance analysis format shows ‘never a variance’ for

The 4-variance analysis format shows ‘never a variance’ for two areas. Which two areas? Why?

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Q: Distinguish between total direct materials yield and mix variances.

Distinguish between total direct materials yield and mix variances.

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Q: Direct materials yield and mix variances are particularly useful when materials are

Direct materials yield and mix variances are particularly useful when materials are substitutable.’ Do you agree? Explain.

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Q: Name three sources of the standards used in the total direct materials

Name three sources of the standards used in the total direct materials yield and mix variances.

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Q: Changes in the mix of direct materials used from the budgeted mix

Changes in the mix of direct materials used from the budgeted mix always hurt yield.’ Do you agree? Explain.

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Q: How might managers use information about direct-labour yield and mix

How might managers use information about direct-labour yield and mix variances in improving the performance of a business?

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Q: Give an example of an input other than direct materials and direct

Give an example of an input other than direct materials and direct labor where calculating yield and mix variances might be useful. Explain your reasoning briefly.

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Q: The manager of a highly automated plant that assembles desktop computers commented

The manager of a highly automated plant that assembles desktop computers commented, ‘Yield and mix variance information is irrelevant to my cost management decisions.’ Give two possible reasons for th...

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Q: What is strategic management accounting?

What is strategic management accounting?

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