Discussion Post: Variances
Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs? Explain.
As you are considering the flexible budgeting topic, it is important for you to look at this analysis as a significant contribution to the management of the company. Knowing what the bottom line profit or loss is important. But what is more important is to understand how your actual results varied in terms of units sold versus how the actual cost of each unit differed from the budget.
The response must include a reference list. One-inch margins, double-space, Using Times New Roman 12 pnt font and APA style of writing and citations.