Questions from Management Accounting

Q: Suppose that utilities are considered a fixed cost for a retail clothing

Suppose that utilities are considered a fixed cost for a retail clothing outlet. Why might we expect a variance to occur for the cost of utilities?

Q: Distinguish between a price variance and an efficiency variance.

Distinguish between a price variance and an efficiency variance.

Q: Explain the difference between an ideal standard and a currently attainable

Explain the difference between an ideal standard and a currently attainable standard.

Q: Discuss the different methods that an organisation can use to determine standard

Discuss the different methods that an organisation can use to determine standard costs.

Q: Discuss the behavioural issues that need to be considered when establishing a

Discuss the behavioural issues that need to be considered when establishing a standard cost.

Q: Explain the difference between a static budget and a flexible budget.

Explain the difference between a static budget and a flexible budget.

Q: Which item has the same value for both the static budget and

Which item has the same value for both the static budget and the flexible budget?

Q: Wild Bird Feeders produces deluxe bird feeders for distribution to catalogue companies

Wild Bird Feeders produces deluxe bird feeders for distribution to catalogue companies and wild bird stores. The company uses an absorption costing system for internal reporting purposes but is consid...

Q: Discuss the different types of budget variances that can be calculated.

Discuss the different types of budget variances that can be calculated.

Q: Explain how accountants and managers decide which cost variances to monitor.

Explain how accountants and managers decide which cost variances to monitor.