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Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Terra Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division appears to have performed better?
Standard Cost Card
A detailed listing of the standard amounts of inputs and their costs that are required to produce one unit of a specific product.
Standard Variable Cost
The budgeted, per-unit cost of variable elements of production, such as materials and labor, under normal operating conditions.
Direct Materials
The cost of raw materials that can be directly traced to the production process.
Materials Price Variance
The difference between the actual cost of materials used in production and the expected standard cost, which can indicate changes in material costs over time.
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