alleryStart learning →What is the stated purpose of analysing present cost variances?
ARaise selling prices
BControl future costs
CReduce share capital
DDelay tax filing
Answer & Solution
Correct answer: B. Control future costs
Understanding why present costs differ from standard lets managers act to control costs later.
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Related questions
Management accounting information is computed by reference to whose needs?Variance analysis compares actual and budgeted cost of which inputs?What happens in management by exception when a deviation from the norm is insignificant?In passive management by exception, when does the manager step in?An adverse variance exists when budget versus actual leads to what effect on profit?Under standard costing, where are fixed costs of unsold goods made in a period carried forVariance analysis is a tool of budgetary control and of what other function?Besides costs, variance analysis can also be carried out for which other item?