HW#7 part2 - analysis is the one which is able to help...

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Kanyarat Lertsatchanant Acct 203: HW. chapter 22 Part 2 Date: 03/ 10/ 2008 a. How does variance analysis affect decisions make by management?? Variance analysis “in budgeting is a tool of budgetary control by evaluation of performance by means of variance between budgeted amount, planned amount or standard amount and the actual amount incurred/sold. Variance analysis can be carried for both costs and revenues.” (Wikipedia) I think it is kind of tool to control the budget for making the business. In real business, making big decision has to consider based on the plan. In short, variance
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Unformatted text preview: analysis is the one which is able to help manager to make decision efficiency. b. Why was the “cost per pound” figure so important to Carnegie?? Explain?? It is very important because they know exactly what the low price they can charge and still can make the profit. As a result, the competitors are still guessing how much they should charge. In business world, it is necessary to know the price per pound so that they will know how much they should charge so that they can make profit....
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