Question: a. Based on the difference between absorption costing and variable costing, explain why profit calculated under the full (absorption costing) approach is influenced by changes

a. Based on the difference between absorption costing and variable costing, explain why profit calculated under the full (absorption costing) approach is influenced by changes in the level of both production and sales (Marks: 5) b. Critically analyze how the act of preparing budgets may lead directly to feedforward control and use the cash budget as an example to demonstrate how preparing budgets may help to anticipate problems (Marks: 5) c. Assess the following remark and support your answer with an example: A favorable direct labour rate variance can only be caused by staff working more efficiently than budgeted" (Marks: 5) a. Based on the difference between absorption costing and variable costing, explain why profit calculated under the full (absorption costing) approach is influenced by changes in the level of both production and sales (Marks: 5) b. Critically analyze how the act of preparing budgets may lead directly to feedforward control and use the cash budget as an example to demonstrate how preparing budgets may help to anticipate problems (Marks: 5) c. Assess the following remark and support your answer with an example: A favorable direct labour rate variance can only be caused by staff working more efficiently than budgeted" (Marks: 5)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock 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

Students Have Also Explored These Related General Management Questions!

Based on the difference between absorption costing and variable costing, explain why profit calculated under the full (absorption costing) approach is influenced by changes in the level of both...

PLEASE ONLY ATTEMPT IF YOU ARE GOING TO DO ALL QUESTIONS; IF NOT WILLING TO DO ALL QUESTIONS THEN DO NOT ATTEMPT THIS AS THERE ARE OTHER PEOPLE THAT WILL. THIS IS MY LAST QUESTION I CAN NOT AFFORD TO...

7-1 What is the difference between absorption costing and variable costing? 7-2 Are selling and administrative expenses treated as product costs or as period costs under variable 7-3 Explain how...

Perwira Holdings (PH) began business at the start of the current year and maintains its accounting records on an absorption-cost basis. The following selected information appeared on the company's...

true or false File lor berision Making lor lecist Trehe 2 Points) sales del les dollars that must be sold to achievemen The break even point is the number of units t the amount each sold contributes...

Paragraph Styles True/False (2 Points) 1. The break-even point is the number of units or sales dollars that must be sold to achieve zero profit True 2. The contribution margin per unit is the amount...

AaBbCd AaBbCd AaBbCd AaBbcc AaBbc 1 Colorful.. T List Para... Normal 1 No Spac... Heading 1 A- Paragraph Styles Chapter 3 - 3 Test True/False (3 Points) 1. Per unit fixed costs change with changes in...

MANAGERIAL ACCOUNTING - TRUE OR FALSE STATEMENTS. (PLEASE SKIP IF YOU ARE NOT ABLE TO ANSWER THEM ALL. THANK YOU!) If volume increases, all costs will increase. The relevant range of activity is the...

1 Managerial Accounting Quiz 3 Hen has a single production process, for which the following costs have been estimated for the period ending 31st December Year 7: Material receipt and inspection costs...

Under the accrual basis of accounting, when do companies record deferrals and accruals?

3. A Telephone is an example of which system? (A) Half duplex (B) Full Duplex (C) Simplex 4. A building announcement system is an example of which system? (A) Half duplex (B) Full Duplex (C) Simplex...

Accounting is the process of measuring requiring communicating financial information that decision - maker needs to make decisions true or false

When older adults have difficulty with transportation and communication, or may be reluctant to request needed assistance to which they are entitled, they may be in need of: Group of answer choices...