Reporting Variances - REPORTING VARIANCES

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REPORTING VARIANCES All variances should be reported to appropriate levels of management as soon as possible . The sooner  managers are informed, the sooner they can evaluate problems and take corrective action. The form, content, and frequency of variance reports vary considerably among companies. One  approach is to prepare a weekly report for each department that has primary responsibility for cost  control. Under this approach, materials price variances are reported to the purchasing department,  and all other variances are reported to the production department that did the work. The following  report for Xonic, Inc., with the materials for the Weed-O order listed first, illustrates this approach.  Illustration 22-22    Materials price variance report
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Reporting Variances - REPORTING VARIANCES

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