Away, as discussed in the chapter opener, uses a costing system with standard costs for direct materials,direct labor, and overhead costs. Two comments frequently are mentioned in relation to standard costing and variance analysis: “Variances are not explanations” and “Management’s goal is not to minimize variances.”

Required

Write a short memo (no more than one page) to Jen Rubio and Steph Korey, Away’s co-founders, interpreting these two comments in the context of their luggage business.