
Managing any company requires careful analysis and calibration of all business activities. Even small and seemingly insignificant changes can have an effect on the overall flow of the business--and it is these changes that a manager must look out for.
This chapter covers how businesses can account for these changes and maintain control--through flexible budgets and standard cost systems.
Module Outcomes:
- Determine how managers use budgets to control business activities.
- Explain why managers use a standard cost system to control business activities.
- Explain how standard costs determine direct materials, as well as direct and manufacturing labor variances.
- Determine the relationship among product cost variances.
- Differentiate between journal entries in a standard cost system.