Discussion 5

Variance Analysis

Write an analytical summary of your learning outcomes from chapters 9 and 10. In addition to your analytical summary, address the following:

1.     As a manager, discuss how you would use or have used the concepts presented in chapters 9 and 10.

2.     Why might managers find a flexible-budget analysis more informative than static-budget analysis?

3.     How might a manager gain insight into the causes of flexible-budget variances for direct materials, labor, and overhead? Provide at least one numerical example to support your thoughts.