1
answer
0
watching
80
views

Of the several uses of standard costing, one of the mostcontroversial is using these standards for performance evaluationof an individual, team, or unit. Consider the labor efficiencyvariance and assume it is one of the measures for a company’sperformance evaluation of a business unit. When might or might notvariance from such a standard be an appropriate measure? How wouldthis metric’s effectiveness as a performance measure be affected bya decrease in demand or changes in production volume? Would itseffectiveness be different for a service unit than a manufacturingunit? In the event that it is not effective as a performancemeasure, does it have a strong purpose? How does this compare withother variances from standard?

For unlimited access to Homework Help, a Homework+ subscription is required.

Deanna Hettinger
Deanna HettingerLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in

Related questions

Weekly leaderboard

Start filling in the gaps now
Log in