By Ernest Laidler F.C.M.A. (auth.)
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Extra resources for Variance Accounting
In certain cases after-sales service and/or order processing may also be included. Subsidiary budgets are usually prepared for selling, publicity and distribution. Selling expense budget This relates to that portion of marketing cost which is incurred in securing orders. Functional Budgets 55 Budgeting selling expense. , to employ so many salesmen at known remuneration scales.
The simplified example above forms part of the hypothetical exercise. 52 Variance Accounting cost of a unit or batch of product. The selling price and the contribution or profit may also be shown. The standard cost sheet provides vital data for purposes of direct labour and material budgets and fulfills an important role in connection with variance analysis. Work study. The term work study embraces the techniques of method study and work measurement which are employed to ensure the most efficient use of materials, equipment and human effort.
As suggested in Subsection (a), some customers may be prepared to pay more than the average market price, for real or imagined quality considerations. 50 100,000 80,000 30,000 34 Variance Accounting The company objective is usually to eam the maximum profit and this will influence the pricing decision, taking into account the financial disadvantage of low utilisation of productive resources. Sterling soles budget When it is established that productive resources are commensurate with the budgeted sales quantities, the latter are evaluated at net selling prices.
Variance Accounting by Ernest Laidler F.C.M.A. (auth.)