The production-volume variance should always be written off to Cost of Goods Sold. Do you agree? Explain.
Question:
The production-volume variance should always be written off to Cost of Goods Sold. Do you agree? Explain.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
A strong case can be made for writing off an unfavorable productionvolume variance to cost of goods ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0136126638
13th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
Question Posted:
Students also viewed these Cost Accounting questions
-
The production volume variance indicates whether a company has spent more or less than called for in the budget. True or false?
-
The production volume variance should be charged to the production manager. Do you agree? Why or why not?
-
Cost of goods sold is shown as a distinct line item on the income statement. Where is information related to cost of goods sold shown on the statement of cash flows under both the direct and indirect...
-
A mutual fund has 20 stocks in its portfolio. On a given day 9 stocks move up, 3 stay the same, and 8 move down. In how many ways could this happen?
-
Two point sources of light are separated by 5.5 cm. As viewed through a 12-m-diameter pinhole, what is the maximum distance from which they can be resolved (a) If red light ( = 690 nm) is used, (b)...
-
1. According to the text, a personal balance sheet is a statement of your net worth. It is an accounting of what you own as well as what you owe. Using the information provided, prepare a personal...
-
Suppose you make 15 equal annual deposits of \($1,000\) each into a bank account paying 5% interest per year. The first deposit will be made one year from today. How much money can be withdrawn from...
-
The absorption cross section on the ordinate of the ozone absorption spectrum at the beginning of this chapter is defined by the relation where n is the number of absorbing molecules per cubic...
-
Allocating product costs between ending inventory and cost of goods sold. Solomon Manufacturing Company began operations on January 1 . During the year, it started and completed 1 , 6 2 0 units of...
-
Visit the website for the Congressional Budget Office (www.cbo.gov), follow the link to Budget and Economic Information, and look up the most current Monthly Budget Review. What is the CBOs estimate...
-
Provide one caveat that will affect whether a production-volume variance is a good measure of the economic cost of unused capacity.
-
What are the variances in a 4-variance analysis?
-
Consider the following computer output. (a) Is this a one-sided or a two-sided test? (b) Fill in the missing values. (c) Can the null hypothesis be rejected? (d) Construct an approximate 90% CI for...
-
Purple Reign is a clothing manufacturer/retailer based in Minneapolis, MN. The company started by making and selling t-shirts with images of the musician Prince on them. Business picked up and the...
-
Sheridan Zone Corporation experienced the following variances: materials price $390 U, materials quantity $1,870 F, labor price $880 F, labor quantity $550 F, and total overhead $1,320 U. Sales...
-
Ruth, Reg and Roger are in partnership sharing profits 32:38:30, after crediting Roger with a salary of 3,000. Roger retired on 31 December 2021 and profits are shared equally between Ruth and Reg...
-
Sarah, Tim and Joe are in partnership. Adjusted profits for the year to 31 May 2023 are 300,000. Up to 31 October 2022, the partners share profits 35:30:35 after charging a salary for Tim of 12,000...
-
Scaffolding is to be constructed on a wall of a three-story building in order for masonry rehabilitation work to be performed. The surface area of the wall to be scaffolded has been measured at...
-
Malocal bank, kan ufficers must evaluate loan application hefare approving or denying them. During this evaluation proces many factors regarding the loan request and the ap plicant's background are...
-
What is EBIT/eps analysis? What information does it provide managers?
-
This graph shows a plot of the rate of a reaction versus the concentration of the reactant. a. What is the order of the reaction with respect to A? b. Make a rough sketch of a plot of [A] versus...
-
Corners Ltd. owns and manages three convenience stores. The following information has been collected for the year 2018: Required 1. Compute the ROI for each store, where investment is measured at (a)...
-
The following data refer to the successful Munger division of Buffett, Inc. Munger makes and sells high-end cordless drills. The drills sell for $80 each, and Munger expects sales 01300,000 units in...
-
Consider the following data for November 2018 from Grey Manufacturing Company, which makes silk pennants and uses a processcosting system. All direct materials are added at the beginning of the...
-
Sophia operates a large singing school with 22 employees. She receives advance fee payments from students in respect of each course (a course consists of 26 lessons). If a student does not attend all...
-
What role does agency play in the Hypodermic Model of Communication? Long after the model has been abandoned by experts in persuasion and mass media, why does this model live on as common sense?
-
Daniel is a resident individual who carries on a retail business but does not use the SBE method of accounting for income in his business. On 30 June of the current tax year he had trade debtors of...
Study smarter with the SolutionInn App