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In this report, I result discuss the mathematical process of NASA partitioning for the past 9 months during the fiscal year with special guardianship to the meaning and accuracy of the playscript variance. Then I will identify the issues of the best sales and production strategy for EROW discussion section, NASA Division and the Rubber Group as a whole. At last, my recommendations of changes that should be made in the management accounting achievement formation to improve the reporting and evaluation of the Rubber Group performance will be raised.

NASA Rubber Division’s performance:
As shown on the statement of net contribution folk 1986, NASA Rubber Division’s actual net sales revenue exceeds the cipher by yielding a gilded net sales variance of 4,579,000. NASA also generates a convinced(p) gross margin by accurately and reasonably budget the variable costs. NASA calculates standard variable cost per tonne of butyl by multiplying a standard utilization factor by a standard bell launched for each unit of input.



Since feedstock prices change with worldwide market conditions and represented the largest component of costs, it is impossible to establish standard input prices that remained valid for extended periods. Therefore, the company set feedstock standard costs each month to a price that reflected market prices. This constant adjustment makes sure the accuracy of the measuring rod of the variable costs. However, NASA’s actual gross profit is close 50% below budget because the actual total ameliorate costs are much higher than the budget; and record variance would be the key factor resulting in this discrepancy.

The unfavourable 5,250,000 volume variance is considered huge, which is about 50% of the actual volume variance cost....If you want to get a full essay, inn it on our website: Ordercustompaper.com



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