Cost Accounting Research Paper
Executive Summary
By looking at the calculation result from Appendix, we are aware that the efficiency variances for material, labour and variable overhead, the labour price variance and spending variance for variable and fixed overhead turn out to be unfavourable and favourable. These results can be used to evaluate the Jigsaw department, and give the performance evaluation of Jason Cheng (department’s manager), Thomas Licuria (purchasing manager), Christine Tarrant (production manager). It is followed by detailed explanation of approaches specified in the development of the standard costing system; variance analysis, performance evaluation and reward system respectively, and the proper recommendations to improve those three areas.
Introduction
Strattenberg Toys that a privately owned company in the manufacture of toys, puzzles, games and jigsaws has been operating for over 20 years. Each department is responsible for production, distribution and customer service related to its products. Research and Development, Product and Process Design and Marketing are undertaken centrally. The company had a great reputation in their industry. The Jigsaws Department began operations in March 2002 and has finished its first full financial year of operations. Read more…