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Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
Edition 1ISBN: 978-0538736787 Exercise 47
MARKET SHARE VARIANCE, MARKET SIZE VARIANCE
Budgeted unit sales for the entire lawn mower industry were 1,200,000 (of all model types), and actual unit sales for the industry were 1,190,000. Recall from Cornerstone Exercise 18-6 that Rombley, Inc., provided the following information:
Required:
1. Calculate the market share variance (take percentages out to five significant digits).
2. Calculate the market size variance.
3. What if Rombley actually sold a total of 61,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?
Budgeted unit sales for the entire lawn mower industry were 1,200,000 (of all model types), and actual unit sales for the industry were 1,190,000. Recall from Cornerstone Exercise 18-6 that Rombley, Inc., provided the following information:
Required:
1. Calculate the market share variance (take percentages out to five significant digits).
2. Calculate the market size variance.
3. What if Rombley actually sold a total of 61,000 units (in total of the two models)? How would that affect the market share variance? The market size variance?
Explanation
Verified
Verified
1)
Compute market share variance:
...
Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen
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