Accounting: Standard Cost and Variance Analysis

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ABC/123 Version X

Standard Cost and Variance Analysis

ACC/400 Version 2

University of Phoenix Material

Standard Cost and Variance Analysis

Complete this matrix by providing at least 2 reasons why you agree and 2 reasons why you disagree with each of the following author’s statements (shown on page 17 of the article).

Support your arguments with at least 125 words for each agreement/disagreement.

Author’s Comment	I agree because…	I agree because…
“In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost.”
“This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization.”
“The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions.”
“The analyst’s role will become proactive instead of reactive.”

Author’s Comment	I disagree because…	I disagree because…
“In the future, I envision more companies moving toward actual cost systems. Standard cost variance analysis will no longer be required because inventory transactions will be recorded at actual cost.”
“This change will free up significant resources in the finance department and will allow cost analysts to function more as business partners within the organization.”
“The accounting focus will shift from variance analysis to understanding the underlying cost structure of a product or process, highlighting significant cost trends, identifying cost reduction opportunities and educating operations personnel on the financial impact of their day-to-day decisions.”
“The analyst’s role will become proactive instead of reactive.”