In job order costing, explain how comparing actuals to the estimates for direct material and direct labor costs can be helpful to management
What will be an ideal response?
Conducting cost variance analysis can help managers in several ways. If the managerial actions that led to actual costs being lower than estimated costs are identified, similar cost savings can be realized by repeating those actions in the production of other jobs. If factors resulting in actual costs being higher are identified, then managers may be able to take the necessary actions to eliminate or control those factors. If cost changes are likely to be permanent, however, the revised cost information can be used in bidding for jobs in the future.
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The forces in the international environment are the same as those in the domestic environment except that they occur in foreign nations.
a. true b. false