1.

Which of the following management function is standard costing most related to and
why?
 After studying and understanding standard costing, I think it most related to the
planning in terms of management function because when we say standard costing
it involves estimating required costs for a production procedure.
2. Are all variances investigated? Why or why not?
 Companies occasionally investigate all variances because discovering the causes
of variances is costly.
3. How are variances disposed or resolved?
 Both variances should be transferred to the Profit and Loss Account. Using a
satisfactory basis, distribute variances over cost of revenue, work-in-process, and
finished product supplies on a pro-rata basis. The rationale for allocating variation
to inventories and cost of sales is that they reflect expenses even though they are
extracted as variances.
4. What is the difference between the controllable and noncontrollable variances?
 Controllable variance is a set of overhead variances that management can alter or
control, while the noncontrollable variance focuses on fixed overhead volume
variance.
5. Differentiate the three: 1. Actual Amounts, 2. Budgeted Amounts and 3. Standard
Amounts.
 Budgeted amounts are the estimation of an account's profits and expenditures for
a fiscal year, while actual amounts are at a certain point in time during a fiscal
year, the actuals represent how much cash an account has directly received or how
much money an account has paid out in expenses. Lastly, standard amounts are
the method of substituting an estimated expense for a real cost in financial reports.
6. What is a flexible budget and how does it compare with the static budget?
 A flexible budget can be adjusted. On the other hand, the static budget remains
the same even though there are changes.