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| Topic: |
Business
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| Number of pages / Number of words: |
3 / 821 |
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The cost indicated for labor was equalized by the labor efficiency achieved. The continued labor efficiency can be maintained by focusing on the more productive and efficiency of it workers. The last two variances overhead spending and overhead efficiency are not material as at this point they tend to cancel each other out of the equation mathematically...
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When the actual costs are more than the standard costs the variance is unfavorable. If the actual costs are less than the standard costs, the variance is favorable. The individual causes of variances can then be investigated, recognizing possible interdependencies across individual causes.
Cost variance information can help management identify concerns and make decisions...
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General points of the essay
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