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variancce analysis
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∙ 15y ago
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Importance of standard costing?
A valuable management tool, standard costing is part of cost accounting. Rather than using actual costs for direct material, labor and manufacturing overhead, standard costs are used to easily track variances and estimate profit.Though actual costs are still paid, standard costing is often used for inventories and cost of goods sold. The difference between standard and actual costs are known as variances. These variances are what make standard costing such a valuable practice for management. Management can quickly become aware of changes in budgeted costs by tracking the variances.When standard costing is used, you will often hear the terms unfavorable or favorable variance. This refers to changes in actual costs in relation to planned or standard costs. A favorable variance takes place when actual costs dip below standard costs. Conversely, if actual costs rise above standards, the variance is unfavorable.In regards to manufacturing companies, standard costs would first be seen as individual parts or pieces of the finished product. This means that the final standard cost will be the sum of the standard costs of each of the individual pieces of the product.
What do you call the process of comparing an unknown quantity to a standard known quantity?
It is calibrating.
All measurements are made by merely comparing the object to be measured with a known object which is called the?
All measurements are made by merely comparing the object to be measured with a known object which is called the standard , or reference.
Where the actual cost is found to greater than the standard cost is known as?
adverse variance
Where the actual cost is found to be less than standard cost is known as?
favourable variance
What does the word measure mean in math?
ascertain the size, amount, or degree of (something) by using an instrument or device marked in standard units or by comparing it with an object of known size
How did your results compare to your predictions?
Comparing the predicted results with the actual results is known as the forecast error. The purpose of experimentation and statistics is to become better at prediction to reduce the forecast error.
How much does a box of yogurt cost?
One standard container of yogurt (known as "yoghurt" in some cultures) costs approximately eight lengths of rope, and thirty pence.
How can you tell the grade of a browning a-5?
By comparing it with known examples of the grades.
How do you use a balance to obtain an accurate mass?
By comparing the sample with a known mass
What are the costs of business known as?
if you are talking about the costs associated with running a business, they are called "operating costs" there are also the costs that are required to get a business running, they are called "startup costs"
500 degrees equal to how many millivolts?
I am assuming from the question that you want to know about the output from a temperature sensor. While there are some standard types of sensors, the only way to know for certain is to check the specifications for the particular sensor in use. In addition to the specification sheet, the particular sensor will have a calibration factor - the amount it deviates from the standard. That can only be determined by comparing it to a calibrated test source (traceable to known a standard).
