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QUESTION

Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances

Week 6 discussion

Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs? Please explain.                                                                                                                                                                                                                                                                                      

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******* ************* ************** ** the ************** ** ********* *** *********** ********* ** important to * company? *** can *** ************** ** *** variances help ********** control costs Please ************ ******* ******** Standard ***** *** various ******** *** ******** It **** these ***** ** ******* ****** ******* which *** **** *** Projecting ***** return ** investments in *** ******** ******* its services etcCompany **** compares these ******** costs **** ****** ***** *** ********** ******* Standard ***** *** ****** ***** ** called ******** ******** *** ** favourable ** *************** ** ** ******* *** ****** *** ******* ** ****** a PC *** *** ** ***** but ****** cost ******** ** ****** ** is *** ** ***** ******* *** a ********** Labor ******** of ***** * $2 (F)But *** **** Repair ** Standard **** ** ***** used ** ****** PC ** *** but ****** ***** ** **** **** is *** **** company *** ** *********** ******** ** ***** * **** ** $10 ***** ** ******* *** Fav&Unfav Variances now management *** *********** ******* Unfav ******** ******** is due ** Unskilled Labor ***** *** ******** ** ****** ******** ***** *** ******** ********** *** ******** ******** **** ** not reviewed for **** **** *** ** not in **** **** ******* Material *************** there *** other ********* **** ******** ******** ******** ***** ******** ******** ****** ********** ******** Each variance *** *** own distinct application ********** **** *********** *** variances whether *** or ***** ** ******* ***** ** ******* anomalies ** the Standard costs ** ***

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