Explain the significance of variance analysis in decision making. Classify the various material and labour variance. Also give reasons for their occurrence. Meaning of Variance:- The difference between the standard cost and actual cost is known as the variance. So it is the next process, after the establishment of standard cost. When actual cost is …
Describes the Concept of responsibility accounting. Discuss the different types of responsibility centres. Out of these centres tell about the profit centre and the investment centre. Which according to you is a better measure of performance and why ? Meaning of responsibility accounting:- It is a control device that measures the performance of the various …
Distinction between Fixed budget and Flexible Budget Fixed Budget:- It cannot be changed with the volume of activities.Whereas Flexible Budget:- It can be changed with the volume of activity. Fixed Budget:- All costs are concerned with one level of activity only.WhereasFlexible Budget:- It involves classifications of costs by their behaviour. As fixed costs and variable costs. …
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Outline the difference between Management Control, Strategic Planning and Operational Control along with relevant examples. Meaning of Management Control:- It is the process of evaluating, monitoring and Controlling the various units of the organization. This process is done to see the effective and efficient allocation and utilization of resources in achieving the predetermined goals. Management …
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