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Standard cost and variance analysis matrix

03/12/2021 Client: muhammad11 Deadline: 2 Day

Accounting: Standard Cost And Variance Analysis

Read "Standard Cost and Variance Analysis" from the Week 4 Electronic Reserve Reading list.

Complete the provided Standard Cost and Variance Analysis Matrix with your Learning Team, providing at least two reasons why you agree with the author's statements from page 17 and at least two reasons why you would disagree with the author's statement. Each agreement/disagreement statement should be 125 words, at a minimum.

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.”

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