Potential benefits of operating a transfer pricing system within a divisionalised company include the following. (a) It can lead to goal congruence by motivating divisional managers to make decisions...
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The highest activity level is in February and the lowest in May. Total cost at highest activity level = $29,600 Total cost at lowest activity level = $28,00...
The correct answer is: 8,100 Adverse. Original standard selling price per unit $27 Revised standard selling price per unit $18 Planning varia...
Incremental budgets are appropriate when applied to stationary costs, the business is stable and for administration costs when the experience of managers is limited....
The sales mix variance is calculated as the difference between the actual quantity sold in the standard mix and the actual quantity sold in the actual mix, valued at standard margin per unit....
(a) profit-maximising combination of price and demand (b) working at normal capacity will cover all of its fixed costs and make a profit...
Incremental budgeting is appropriate for budgeting for rent, which may be estimated on the basis of current rent plus an increment for the annual rent increase. Advertising expenditure, on the other h...
A planning variance compares an original standard with a revised standard that should or would have been used if planners had known in advance what was going to happen....
The only variances are selling price variances. Planning (selling price) variance ...