Questions from Management Accounting

Q: List several ways that variances can be used to improve future operations

List several ways that variances can be used to improve future operations.

Q: Discuss the three variances that help explain the sales volume variance.

Discuss the three variances that help explain the sales volume variance.

Q: Explain why the variance accounts need to be closed at the end

Explain why the variance accounts need to be closed at the end of the period.

Q: Fly-a-Kite Company manufactures a variety of kite kits

Fly-a-Kite Company manufactures a variety of kite kits. You have been asked by the production manager to prepare a simple but meaningful variance report for product costs so that she can identify area...

Q: Identify the common variances that are needed to reconcile the accounting records

Identify the common variances that are needed to reconcile the accounting records at the end of the period for a manufacturing entity. How are these variances treated at the end of the period if the t...

Q: Discuss factors that affect accountants’ decisions to investigate the reasons for variances

Discuss factors that affect accountants’ decisions to investigate the reasons for variances.

Q: Suppose the direct materials price variance is large and favourable, and

Suppose the direct materials price variance is large and favourable, and the direct materials efficiency variance is large and unfavourable. What questions would you be likely to ask when investigatin...

Q: Why are direct materials price variances usually recorded at the time of

Why are direct materials price variances usually recorded at the time of purchase?

Q: The following price and operating cost information applies to Happy Bikers Motorcycle

The following price and operating cost information applies to Happy Bikers Motorcycle Company. No beginning balance in finished goods is evident because the beginning inventory account on the balanc...

Q: A favourable variance is always good news and an unfavourable variance is

A favourable variance is always good news and an unfavourable variance is always bad news. Discuss.