ACCO 330 - Variance analysis - course pack

ACCO 330 - Variance analysis - course pack - ACCO 330 Cost...

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ACCO 330 – Cost Accounting Variance Analysis 1 Variance Analysis 1. Linear Relationship 2. Marketing Variances 3. Production Yield (efficiency) Variance 4. Production Quantity Variance
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ACCO 330 – Cost Accounting Variance Analysis 2 1. Linear Relationship The master budget and the flexible budget are based on the same cost and revenue linear functions Relationship between variables are constant Master budget is based on the planned level of activity Flexible budget is based on the actual level of activity
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ACCO 330 – Cost Accounting Variance Analysis 3 1. Linear Relationship The cost and revenue functions are linear within the firm’s relevant range As a result, the contribution margin per unit will be the same for both master and flexible budget Sales volume variance: Difference in activity level x CM/unit
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ACCO 330 – Cost Accounting Variance Analysis 4 2. Marketing Variance A. Price variance Same as the selling price per unit variance
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This note was uploaded on 01/24/2011 for the course ACCO 330 taught by Professor Mastromonaco during the Fall '10 term at Concordia Canada.

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ACCO 330 - Variance analysis - course pack - ACCO 330 Cost...

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