Explain how is the material standard developed explain why

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Question 1. How is the material standard developed? Why are the quantities shown in the bill of materials not always the same quantities should in the standard cost card?

Question 2. The overhead spending and overhead efficiency variances are said to be controllable, but the volume variance is said to be non-controllable. Explain.

Question 3. How are insignificant variances closed at the end of an accounting period? How are significant variances closed at the end of an accounting period? Why is there a difference in treatment?

Question 4. Why do managers care about capacity utilization? Are managers controlling costs when they control utilization?

Question 5. Distinguish between a strategic plan and a tactical plan. How are these plans related?

Reference no: EM13463867

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