alleryStart learning →How does variance analysis help management?
ASet tax slabs now
BRaise share capital
CControl future costs
DReplace all budgets
Answer & Solution
Correct answer: C. Control future costs
By explaining present cost differences it lets managers take steps to control costs ahead.
Keep practising Performance Measurement and Variance Reporting
Browse all Performance Measurement and Variance Reporting questions for CA Final, or explore more Cost and Management Accounting topics.
Related questions
Standard 500 kg, used 480 kg, standard price Rs 40. Usage variance?Budgeted sales were Rs 500,000 and actual sales Rs 540,000. The variance is?Standard cost allowed is Rs 60,000 and actual material cost is Rs 63,500. Total variance?Variable overhead of Rs 12,600 for 1,000 hours; standard Rs 12 per hour. Spending varianceStandard 1,800 kg allowed, 1,900 kg used, standard Rs 20 per kg. Usage variance?2,000 kg bought at Rs 52 against a standard Rs 50 per kg. Price variance?Variable cost is $300 per coach, fixed cost $1,000 a month. Full unit cost at 100 coaches?Neely et al. define performance measurement as quantifying what?