Variance

seek in Business and Economics ledger gross tax and end product Volume Variances in Standard be John Parkinson York University, Toronto, Canada Abstract: In this paper we discuss the picking of a numeraire for the calculation of the gross gross sales treat variance. The sales vividness variance seeks to report the transaction of the actual sales volume being unalike from the reckoned sales volume. If divers(prenominal) numeraires are possible, then different values for the sales volume variance will exist for a granted difference amidst planned and actual sales levels. We let protrude from the explicit or implicit materials in various exceedingly C cost accounting textbooks that at least three numeraires are in evidence of call. These are: sales revenue; parcel margin and replete(p)-cost margin. The objective of this paper is to compare the set up of victimization the different numeraires. We also discuss the interrelationship between sales volume v ariances and production volume variances as twain of the numeraires lean to the account of the production volume variance date the use of the contribution margin as a numeraire leads to a authority where the production volume variance cannot exist. In clubhouse to gild these concepts in an accessible form we present a fortune study.

The case study demonstrates the results that are obtained when three different managers, individually using a different numeraire, report on the results of a company where sales volume has missed the budget by a substantial amount. Given the strategic greatness of fashioning realistic sales forecasts a nd achieving sales targets, then this young! of reporting the effect of deviations from targets is of major importance. Keywords: Production volume variances; gross revenue volume variances; Standard costing variances. Sales and Production Volume, scalawag 1 Research in Business and Economics Journal Introduction Sales-related variances are circumstantial to the management of any organization. It is fractious to imagine any laterality area where there is...If you essential to get a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay