Accounting: Standard Cost and Variance Analysis
Read "Standard Cost and Variance Analysis" from the Electronic Reserve Reading Costing Principles and Systems.
Complete the provided Standard Cost and Variance Analysis Matrix with your Learning Team, providing at least two reasons why you agree with the author's statements and at least two reasons why you would disagree with the author's statement. Each agreement/disagreement statement should be 125 words, at a minimum.
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Author's Comment
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I agree because...
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I agree because...
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"In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost."
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"This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization."
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"The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions."
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"The analyst's role will become proactive instead of reactive."
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"In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost."
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"This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization."
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"The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions."
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"The analyst's role will become proactive instead of reactive."
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