Tag Archives for " variance "

Performance Evaluation Reports for Cost, Revenue, and Profit Centers

Performance evaluation requires managers to have a benchmark to use as a guide for future periods. This benchmark is communicated to managers via a budget for their responsibility center. At the end of

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Allocating overhead variances to work-in-progress, finished goods, and cost of goods sold

When overhead is overapplied or underapplied, there are two different ways to allocated the variance. In the previous post, we allocated all of the variance to cost of goods sold. However, that is not

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