ฉันรักแStatic Budgets and Static-Budget Variances
We will take a closer look at variances by examining one company’s accounting system.
Note as you study the exhibits in this chapter that “level” followed by a number denotes
the amount of detail shown by a variance analysis. Level 1 reports the least detail; level 2
offers more information; and so on.
Consider Webb Company, a firm that manufactures and sells jackets. The jackets
require tailoring and many other hand operations. Webb sells exclusively to distributors,
who in turn sell to independent clothing stores and retail chains. For simplicity, we
assume that Webb’s only costs are in the manufacturing function; Webb incurs no costs in
other value-chain functions, such as marketing and distribution. We also assume that all
units manufactured in April 2011 are sold in April 2011. Therefore, all direct materials
are purchased and used in the same budget period, and there is no direct materials inventory
at either the beginning or the end of the period. No work-in-process or finished
goods inventories exist at either the beginning or the end of the period.ปล