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Explain the meaning and relevance of interdependence of variances when reporting to managers?
Wiki User
∙ 14y ago
The cause of one (adverse) variance may be wholly or partly explained by the cause of another (favourable) variance.
- Material price or material usage and labour efficiency
- Labour rate and material usage
- Sales price and sales volume
Wiki User
∙ 14y ago
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Who is responsible for establishing and maintaining internal controls to achieve the objectives of effective and efficient operations reliable financial reporting and compliance with applicable laws?
Managers
Matrix structure of reporting?
Matrix structure of report is an example of the structure of the organization and who everyone reports to. With most companies the CEO is at the top and then the Analysts and Managers.
What the characteristic of company that use ABC method?
Which of the following is a characteristic of ABC? a. Improved financial reporting b. aid to managers in determining product cost c. used in place of job or process costing d. use restricted to manufacturing entities Answer: b. aid to managers in determining product cost Reference: Chapter 8, Activity Based Costing, Managerial Accounting by Garrison
What are the advantages and disadvantages of flexible budgeting?
In short, flexible are much more adventagous in comparison to static planned budgets. Static budgets are prepared before the period, therefore the amount of units sold are likely to be incorrect. This is fine, because it's a budget, but it is not very useful for decision making. Flexible budgets are prepared once the number of actual units sold is known. Think about it this way. If a company sells 200 units, but the static budget predicted 100, all of your expenses are going to result in unfavorable variances. However, expenses would be expected to increase with an increase in sales. Therefore, it is adventagous in terms of decision making based on the variances. The varainces tell managers such things as the efficiency of labor and material usages, as well as the price variances. Hope this helps, but there's tons of info out there for you to find.
What is the difference between management accounting financial accounting and cost accounting?
Management accounting is concerned with the provisions and use of accounting information to managers within organizations, to provide them with the basis to make informed business decisions that will allow them to be better equipped in their management and control functions.Financial accountancy (or financial accounting) is the field of accountancy concerned with the preparation of financial statements for decision makers, such as stockholders, suppliers, banks, employees, government agencies, owners, and other stakeholders. The fundamental need for financial accounting is to reduce principal-agent problem by measuring and monitoring agents' performance and reporting the results to interested users.Cost Accounting - In management accounting, cost accounting establishes budget and actual cost of operations, processes, departments or product and the analysis of variances, profitability or social use of funds. Managers use cost accounting to support decision-making to cut a company's costs and improve profitability.
What should resource managers provide explanations for when reviewing Execution Plan?
Variances
WHAT SHOULD RESOURCE MANAGERS PROVIDE EXPLANATION FOR WHEN REVIEWING THE EXECUTION PLAN?
Variances
Why are separate price and quantity variances computed?
Price and quantity variances are computed respectively because different managers are usually responsible for buying and for using inputs.
What weaknesses of MYOB?
Provide poor reporting for managers
Why do business managers prefer stable earnings trends?
Reduces the likelyhood of reporting low earnings
Do managers do more than just to rule their staff?
Yes, managers do more than rule over their staff. They are responsible for reporting trends and researching how to motivate their employees.
Role of managers in an Business Organisation?
Manager plan, control,organize, coordinate, lead and staffing & reporting
What is financial reporting system?
A financial reporting system is a system that is connected to departments and allow managers to input numbers so that the finance department will have up to date information. These systems have alerts that let executive managers know when something is wrong in production.
Who is responsible for establishing and maintaining internal controls to achieve the objectives of effective and efficient operations reliable financial reporting and compliance with applicable laws?
Managers
What happens in a financ?
Bookkeeping such as invoicing and receipts Profit and Loss management including cash flow management Update Managers via financial reporting
Matrix structure of reporting?
Matrix structure of report is an example of the structure of the organization and who everyone reports to. With most companies the CEO is at the top and then the Analysts and Managers.
The type of information system that provides interactive and ad hoc support for decision making to end user managers is referred to as a?
decision reporting system
