Discussion Question Week 7
tmw21
discussion_questions_week_7.docx· Read the article titled, “Is Standard Costing Still Relevant?,” You may also view the article at http://www.imanet.org/PDFs/Public/MAQ/2010_Q1/maq_winter2010_rao_revised.pdf. Next, the article indicates approximately 90% of the companies in the study were sensitive to the variances in material prices. Examine the major causes of material price variances and speculate the major potential impact on pricing decisions.
Answer:
· Examine the main reasons service companies are more sensitive to labor and price variances, as compared to material price variances, in the industrial sector and determine the importance of companies managing these variances in relation to sustaining profitability.
