StudentShare solutions
Triangle menu

EMA COURSE WORK - Essay Example

Nobody downloaded yet

Extract of sample
EMA COURSE WORK

Other factors such as transporting the materials, utilities, etc could also be used however as stated before it is only an example. Variance Analysis is the difference between what is actually paid and the standard cost. The variance is used as a means for management to discuss performance and to review them. One of the major criticisms of standards is that some forms of standards are outdated and not as widely used as others. Another criticism is that the standards are not attainable. This means that the standards are not within reason. Considering that most standards are outdated and incorporate many different components, it is easy to see how mistakes can be made. If the company uses the wrong information on any of the components than it is guaranteed that a variance will be revealed upon further analysis. The standards are also not changed over a period of time and therefore are prone to be incorrect due to changes in technology or even by inflation. Standards are said to give employees the motivation to meet goals and to push his/her self to meet or exceed the goals of the company. This motivation is also said to benefit the company as a whole because it increases efficiency and productivity. The best way for standard costing to be effective is to have someone from every level to participate. There has traditionally been a problem trying to get enough people to participate so that the results are reasonable. Participants will look for the easy target and this can pose a problem. The easy target is not necessarily the optimum target or the most cost efficient. Participation in the costing or analysis would require a lot of time and knowledge that the participants do not have. Also the more time they spend on it the more it will cost the company in the form of salaries and benefits. There is also the risk of the participants being out for their own individual gain. They could feel as if their participation could help them further their own agenda instead of that of the company. They could also spend too much time talking and not enough time coming up with solutions. Lack of knowledge can also factor into this because if the participants do not understand the goal they are trying to reach, then time can be spent teaching them instead of getting down to business. Management of Time is also another criticism of standard costing and variance analysis. The process is time consuming to say the least and most managers already feel as if they don’t have enough time to carry out their day to day activities let alone deal with standard costing or variance analysis. Managers in particular might feel as if this is something that someone else should be doing, namely someone in the corporate office if there is one. Absorption costing fuels another criticism of standard costing and variance analysis. Absorption costing assumes that all costs of the production of a product are included in the final price of the product (AccountingCoach, LLC). This type of costing can create some problems because it could lead to extremely high standard costing which in turn would always lead to variances. If a product includes all of the fixed costs such as utilities of the entire building, rent of all buildings, etc than the standard cost could be extremely high and overstated. The costs are not allocated over all of the products that are produced in the same area but instead the costs are absorbed into the ...Show more

Summary

Title By; Instructor: Date: Criticisms of Standard Costing and Variance Analysis Standard Costing is the costs that a company believes each product costs the company based on direct material, direct labor, and overhead (Accounting Coach, LLC). The company predicts these costs based on the various components that go into making the product…
Author : trever94
EMA COURSE WORK essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"EMA COURSE WORK"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Course work
They were also the ruling class. Those who labored were the ones who had to serve the nobility. They were serfs and the other lower classes of people who had to do as they were told. Finally the Church hood came. Religion was reserved strictly for the priests and monks.
7 pages (1750 words) Essay
Course work
In 2005, CBC bought out its main competitor Scrubaway Allbright Ltd (SAL) and merged operations. During 2006, the executive board faulted the Managing Director for huge amounts of funds spent on
8 pages (2000 words) Essay
Course work
With the introduction of computers to the society, the easier way of living and completing everyday tasks has become a trend for many
8 pages (2000 words) Essay
Course work
zation who intended to find out the performance gap (the difference between the actual and expected performance) for every employee and assess them accordingly (Barksdale and Lund, 2001, p.169). Logically speaking, such an evaluation system where the employees need to please
12 pages (3000 words) Essay
Course Work
the company can use to create bundles of resources that provide a sustainable competitive advantage to the organization when market is large and competition is immense (Hisrich, Entrepreneurship). Strict adherence to a properly defined security system for information systems
8 pages (2000 words) Essay
Course work
Q2. There is some evidence that in the years immediately following Baldridge or ISO certification/accreditation, performance standards and attention to quality actually decline to levels below the build up to accreditation review. What might
14 pages (3500 words) Essay
Course Work
Synapses are specialized junctions which the signals help the neurons make a circuit in the central nervous system. They are two kinds of hormones, endocrine and exocrine. The endocrine hormones are released directly into the blood stream while the exocrine are
2 pages (500 words) Essay
Course work
enables implementation of correct project management practices and principles and clearly defines the legal relationship between the parties involved (Rowlison, 2011). This type of contract has been beneficial in a variety of ways such as saving on costs, better project quality
3 pages (750 words) Essay
Review the role and functions of the European Medicines agency (EMA) in the context of biotechnology drugs
They provide for and supervise medicines recommended for human and animal use. It has been heavily endowed with the responsibility to provide quality assurance and evaluation of biotechnological product through scientific research and advice to authorized
16 pages (4000 words) Essay
Course Work
As far as the need principle is concerned rewards allocation can be adjusted and it is significantly flexible in nature. According to the principle of equity each individual’s contributions are measured. This principle is highly preferred by the
4 pages (1000 words) Essay
Hire a pro to write
a paper under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT
Comments (0)
Click to create a comment
Contact Us