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BSewWhat? Inc., as discussed in the chapter opener, uses a costing system with standard costs for direct materials, direct labor, and overhead costs.

Two comments frequently are mentioned in relation to standard costing and variance analysis: "Variances are not explanations" and "Management's goal is not to minimize variances."

 

Required

 

Write a short memo to Megan Duckett, SewWhat? Inc.'s CEO, (at least 3 paragraphs, but no more than 1 page) interpreting these two comments.

You will be graded on how well you address the questions. Addressing the questions involves identifying relevant facts, applying the chapter concepts,, and answering each question completely.  Proper APA formatting is expected and required (cited sources, reference page, etc.).  Supplement and synthesize your analysis with outsides scholarly sources.  For assistance with APA citations, please visit the following links: The American Psychological Association Website:  http://www.apastyle.org/

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