In cost accounting, the goal of variance analysis is to ___________?
Correct answer: D. all of above
- A. understand variance reason
- B. improve future performance
- C. learning of improvement
- D. all of above
Explanation
Variance analysis identifies the reasons for deviations, helps management improve future performance, and supports organisational learning. Therefore, all the listed purposes apply.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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More Cost Accounting questions
In management control, an efficiency variance is also referred as __________?
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