Cost variances - PowerPoint PPT Presentation

CHAPTER 15

CHAPTER 15. Cost Analysis for Control. Revisit plans. Implement plans. Data collection and performance feedback. Decision Making. Strategic, Operational, and Financial Planning. Planning and control cycle. Performance analysis: Plans vs. actual results ( Controlling ).

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Performance Evaluation

Performance Evaluation. Chapter 8. Preparing Flexible Budgets. Hmm! Comparing static budgets with actual costs is like comparing apples and oranges. Static budgets are prepared for a single, planned level of activity.

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Standard Costs

Standard Costs are. Standard Costs. Based on carefully predetermined amounts. Used for planning labor and material requirements. The expected level of performance. Benchmarks for measuring performance. Management by Exception.

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