The variance objective function and the approach of variance analysis is risk averse and tends to control the costs specifically with the procurement and the valuation of the stock to be procured. In terms of variance analysis, Markovian control can be used which tends to identify the higher reporting of costs that are actually lower in terms of the cost generation form the cost centers.
This increases the inefficiency of the costing procedures at a company as the lower costs are reported as being higher which leads to inaccurate recording of costs in the books as well as the management focusing on the wrong cost centers for increasing the efficiency of the company. “Sensitivity analysis shows that this observation is reasonably robust with respect to changes in the values of other parameters.” (Dittman & Prakash, 1979)An efficient way of using the variance analysis and the variance techniques of accounting for controlling costs pertain to using a mixed accounting approach. The variance analysis can be used for semi variable costs and the fixed costs that are flexible in nature. Extensions of variance analysis with other basic accounting procedures like standard costing and absorption costing can lead to better and efficient results.
Thank you for visiting Essaydemon.com and viewing our articles and sample papers. Kindly be informed that all these articles and sample papers are for marketing purposes only. The sole purpose of these articles and sample papers is just to provide our customers with an idea about our services before they place an order.
Kindly visit our order/inquiry page for further assistance.
Kindly order custom made Essays, Term Papers, Research Papers, Thesis, Dissertation, Assignment, Book Reports, Reviews, Presentations, Projects, Case Studies, Coursework, Homework, Creative Writing, Critical Thinking, on the topic by clicking on the order page.
Countless students worldwide are satisfied with our professional services.
- 100% original, custom Writing or 100% Money Back guarantee!
- 100% Confidentiality: Your information is secure at all time.
- We guarantee that you will never regret for choosing us.
- 100% guaranteed plagiarism free writing.
- Urgent delivery: Meet your deadline and deliver your custom essay.
- No hidden charges: the price you see is the final cost for all custom papers.
- Excellent 24 hours 7 Days a week free friendly customer support system
FREE Outline, FREE Title page, FREE Bibliography, FREE E-mail delivery, FREE Formatting