What can pena do to reduce the possibility

Reference no: EM133015701

Question: Pena Company computes variances as a basis for evaluating the performance of managers responsible for controlling costs. The system has been in use for about five years. A new manager has started to campaign for a newer system claiming that the present standard costing and variance analysis is outdated and needs to be replaced.

What can Pena do to reduce the possibility that variance analysis is outdated or obsolete? If Pena Company wants to continue using the variances for controlling costs and improving performance, what changes are worth considering?

Reference no: EM133015701

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