Question

What are the different ways of disposing cost variance?

Answer 1

In order to make the analysis a control instrument, the management should investigate the causes of variances and take the necessary corrective measures. Another method is to carry forward the variances to the next financial year by crediting the same to a reserve account to be set off in the subsequent year or years. The favorable and adverse variances may cancel each other in the course of reasonable time and thus be disposed-off.



HOPE IT HELPS


pls Mark me as brainliest ✅✅

Answer 2

The different ways of disposing of cost variance

• The management will evaluate the triggers of the variances and take the necessary corrective measures to make the study a monitoring instrument.
• Another option is to move the variances to the next financial year by crediting the same to a reserve account to be paid up in the year or years that follow.
• In the span of a reasonable time, the beneficial and unfavorable variances may be balanced one another and thereby disposed of.
• Evaluation of variances is important to help balance expenditures by monitoring budgeted versus actual costs.
• Variances between expected and actual costs may result in the modification of business goals, goals, or strategies.

Learn more about cost variance

What is cost variance​

https://brainly.in/question/8859897

Labour Cost Variance​

https://brainly.in/question/13971089