Explain two factors that should be considered when designing divisional performance measures.
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.
