As Was the Case with the Material Presented in Text

question 91

Essay

As was the case with the material presented in text Chapter 14, the cost variances covered in Chapter 15 are directed at what might be called short-term financial control. These variances are calculated based on standard costs and the use of flexible budgets. Periodic reports containing these variances are but a part of a larger and more comprehensive management accounting and control system.

Required:
1. Explain some of the inherent limitations of short-term financial performance measures (such as standard cost variances).
2. Explain how such measures might be supplemented to better meet the planning and control needs of management.

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Definitions:

Alcohol Dehydrogenase

An enzyme that breaks down alcohol in the stomach before it enters the blood.

Delirium Tremens

A severe form of alcohol withdrawal involving sudden and severe mental or nervous system changes.

Withdrawal Reactions

Physical or emotional symptoms that occur after reducing or ceasing intake of a substance that was used regularly.

Non-Hispanic White

A demographic group defined by the United States Census Bureau as people living in the United States who are of European descent and who do not identify as Hispanic or Latino.