Bytes Limited operates an IT consultancy business and uses a coding system for i-新东方在线职业题库

Bytes Limited operates an IT consultancy business and uses a coding system for its elements of cost (materials, labour or overheads) and then further classifies each element by nature (direct or indirect cost):

Element of cost Code Nature of cost Code

Materials A Direct 100

Indirect 200

Labour B Direct 100

Indirect 200

Overheads C Direct 100

Indirect 200

What would the codes be for the following costs?

Cost Code

Salary of trainee IT consultant

Planning costs to renew lease of the office

Wages of the office manager

Cleaning materials used by cleaner

Chapter4Costclassification

Cost Code

Salary of trainee IT consultant B 100

Planning costs to renew lease of the office C 200

Wages of the office manager B 200

Cleaning materials used by cleaner A 200

多做几道

What does an adverse variable overhead efficiency variance indicate and what might be the cause?

Explain briefly the possible causes of

(i) A favourable material usage variance

(ii) A favourable labour rate variance

(iii) An adverse sales volume contribution variance.

What is the relationship between the labour efficiency variance and the variable overhead efficiency variance? Why might the monetary value be different?

Explain the meaning and relevance of interdependence of variances when reporting to managers.

A balanced scorecard measures performance 什om four perspectives: customer satisfaction, growth, financial success and process efficiency. Briefly explain these processes.