Cost Acct PPT

 Students should submit a 8-10 content slide PowerPoint with speaker notes showing all calculations, including the following:

1-What is meant by budget variance?

Please discuss

2-What is an effective way to incorporate variance analysis into the budget process?

Please discuss

3-What are the differences between labor and material variances?

Please discuss

4-How is a quantity variance different from a rate variance?

Please discuss

5-What are the subcomponents of fixed overhead?

Please discuss

6-What are the subcomponents of variable overhead?

Please discuss

7-What is the lowest possible price you could offer to this potential customer (You know that we have sufficient capacity, without working overtime and without adding any new equipment, to make this order)? Please show the calculations.

Please discuss

8-In terms of capacity, under what conditions would offering this lowest possible price be a bad decision? Why?

Please discuss

9-You have been considering investing in automation to eliminate some factory labor if you get this large order. This technology advancement will cost an added $100,000/yr. to lease (net of taxes), but it will reduce labor cost/unit on the customer's units by 50%. How would this change the lowest possible price you could offer to this potential customer and at least still break even? Please show the calculations.

Please discuss