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

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

Step by Step Solution

★★★★★

3.31 Rating (181 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Yes When inputs are substitutable direct materials efficiency improvement relativ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1071-B-M-A-J-O-C(2480).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

Q:

Markku Antero Oy produces perfume. To make this perfume, Markku Antero uses three different types of fluid. Tartarus, Erebus and Uranus are used in standard proportions of -14-0, -3- 10 and -3- 10,...

Q:

Distinguish between total direct materials yield and mix variances.

Q:

Tropica AB processes tropical fruit into fruit salad mix, which it sells to a food-service company. Tropica has in its budget the following standards for the direct materials inputs to produce 80 kg...

Q:

Direct materials yield and mix variances are particularly useful when materials are substitutable Do you agree? Explain. lop8

Q:

Titanium Actual results for the first month using the online sup 400 5,200 lb. for $88,400 Bicycles produced Titanium purchased 4,700 lb. Titanium used in production Dir 1. Compute the direct...

Q:

Direct materials price and efficiency variances, direct materials yield and mix variances, perfume manufacturing. (SMA, adapted) (40 minutes) Markku Antero, Oy, produces perfume. To make this...

Q:

Titanium Actual results for the first month using the online sup 400 5,200 lb. for $88,400 Bicycles produced Titanium purchased 4,700 lb. Titanium used in production Dir 1. Compute the direct...

Q:

Question 5 Truthful Industries is a vertically integrated firm with several divisions that operate as decentralized profit centres. Truthful's Systems Division manufactures scientific instruments and...

Q:

a. United Trading sells three products as follows. Product Footballs Baseballs Rugby balls Selling price/unit 7kshs 6kshs 9kshs Variable Cost/unit 3kshs 4.5kshs 5kshs Budgeted sales(units) 2000kshs...

Q:

Direct Materials Mix and Yield Variances Chypre, Inc., produces a cologne mist using a solvent mix (water and pure alcohol) and aromatic compounds (the scent base) that it sells to other companies...

Q:

Discuss the principal sources of discrepancy between social costs and benefits on the one hand and monetary costs and benefits on the other.

Q:

Your client, Janice Rush, is the owner/manager of a store that sells jewelry, fine china, sterling silver flatware, and other gifts. The store has 10 employees, mostly sales personnel who advise...

Q:

Question 1 6 5 pts The spot price for the WTI futures is $ 9 0 . The risk - free rate is 4 % a year. The 6 - month WTI futures is trading for $ 9 2 . 2 . Assuming that there is no storage cost, you...

Q:

In a small group, identify and research an environmental threat such as a regulatory threat, a cultural threat or an economic threat posed to global marketers. Analyse the issues related to this...

Q:

1. To what extent did cost-plus pricing contribute to the decline in total sales revenues? 2. How might City Steel determine the price at which it sells steel?

Q:

1. Can you think of any reason why two customers who purchase equal volumes of equivalent products might be more or less profitable? 2. What actions should a company take with its unprofitable...

Q:

The traditional methods of cost allocation, cost apportionment and absorption into products are being challenged by some writers who claim that much information given to management is misleading when...

Q:

Which of the answers following these questions are correct? 3. Five Rivers Casino is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon...

Q:

Schauffele is considering an acquisition of Varner, Inc., a privately-held firm that manufactures healthcare diagnostic equipment. Assume that the correct WACC to value the cash flows is 12.15%....

Q:

The following table shows your stock positions at the beginning of the year, the dividends that each stock paid during the year, and the stock prices at the end of the year. What is your portfolio...