The results from a variance analysis are important for helping manager
The results from a variance analysis are important for helping managers control costs as well as identify areas were organizational performance and efficiency can be improved.
review and reflect on how actual costs, standard costs, and variance analysis will contribute to your current or future role as a manager or in decision making. Consider the role of variances when engaged in decision making and how variance analysis might help contribute to improved organizational efficiency.
Rubric:
Describe a scenario in which there are both highly favorable and highly unfavorable variances. Be sure to include the actual and standard costs in your scenario.
- Analyze how and why you, as a manager, would prioritize the variances for analysis and how knowing these variances might help you improve efficiency.
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