Fundamentals of Cost Accounting 3rd Edition by William N. Lanen, Shannon W. Anderson, Michael Maher

Exercise 44

Sales Activity Variance

Refer to the data in Problem 16-43. Prepare a sales activity variance analysis for Tolstoy Corporation like the one in Exhibit 16.4.

Step 1 of 4

Cost accounting

This system is designed for inhouse or internal managers and their decision making. Cost accounting information is not needed for comparison with other companies. This information is commonly used in financial accounting also, but it is primarily used by company managers for their decision making. It is important that cost accounting information is relevant for the decision making of the manager.