PROJECT. Analyze the Following (30 Marks)

Directions: Solve all the requirements of the problems. Show your solutions.

Question 1: Planning is the process of thinking about the activities required to achieve a desired goal. It is the first and foremost activity to achieve desired results. It involves the creation and maintenance of a plan, such as psychological aspects that require conceptual skills.Explain in details profit planning whats the purpose of profit planning and state the importance and techniques of profit planning. (10 Marks)

Question 2: production, research, retail, and accounting, a cost is the value of money that has been used up to produce something or deliver a service, and hence is not available for use anymore. In business, the cost may be one of acquisition, in which case the amount of money expended to acquire it is counted as cost. In this case, money is the input that is gone in order to acquire the thing. This acquisition cost may be the sum of the cost of production as incurred by the original producer, and further costs of transaction as incurred by the acquirer over and above the price paid to the producer. Usually, the price also includes a mark-up for profit over the cost of production. Define in details with example the Standard Cost . (10 Marks)

Question 3: Variance analysis can be summarized as an analysis of the difference between planned and actual numbers. The sum of all variances gives a picture of the overall over-performance or under-performance for a particular reporting period. For each item, companies assess their favorability by comparing actual costs to standard costs in the industry. What is variance analysis and how is it used ? Explain the main purpose and types of variance analysis. (10 Marks)