What are control limits and how are they set, Accounting Basics

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What are control limits and how are they set

Questions:

1. Explain why the variable overhead spending variance is not a pure price variance.

2. What is the cause of an unfavorable volume variance? Does the volume variance convey any meaningful information to managers?

3. What are control limits, and how are they set?

4. Explain how the 2-, 3-, and 4-variance overhead analyses are related.

5. Explain what mix and yield variances are.

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Accounting Basics: What are control limits and how are they set

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Accounting Basics: What are control limits and how are they set

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