COST ACCOUNTING
COST MANAGEMENT SYSTEMS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Landed Cost Variance Analysis can be performed based on which three dimension combinations?
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Business Unit/Landed Cost Charge/Cost Organization
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Item/Business Unit/Route
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Item Category/Material Supplier/Landed Cost Charge
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Inventory Organization/Landed Cost Charge/Third Party Supplier
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Item Catalog/Inventory Organization/Business Unit
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Explanation:
Detailed explanation-1: -The three main types of variance analysis are material variance, labor variance and fixed overhead variance.
Detailed explanation-2: -The most simple form of cost variance analysis is to subtract the budgeted or standard cost from the actual incurred cost, and reporting on the reasons for the difference. A more refined approach is to split this difference into two elements, which are: Price variance.
Detailed explanation-3: -Variance is classified as follows: Direct Material Variance. Direct Labor Variance. Overhead Variance.
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