BUSI 2160U Chapter Notes - Chapter 3: Resource Consumption, Purchasing Manager
Document Summary
The two-cost system: budgeting and variance analysis. = (950 5 ) ,000. = ,500 u flexible budget variance: price variance. = ,000 u price variance: efficiency variance. Flexible budget variance = flexible budget costs actual costs. = (number of actual surgeries or nursing hrs. allowed per surgery standard cost per surgery) actual cost. = sh flexible budget variance: price variance. = (standard price actual price) actual quantity of or nursing hrs. = ,000 f price variance: efficiency variance. = (standard quantity actual quantity) standard price. Although answers will vary, most students likely will choose the vital-signs costing system for numerous reasons, some of which should be included in the following discussion. At this point in the discussion, it is helpful to emphasize the importance of designing a cost system that uses allocation bases that represent the causal drivers of costs.
