Correct: Lower the price of the finished goods to increase volume of sales. , Increase advertising to improve volume of sales . , A change of supplier may be an option for improving materials prices , Negotiation of bulk or trade discounts for materials purchased , Updating machinery may improve the materials usage and improve the labour force efficiency, Better production materials' quality control may reduce wastage, Better staff supervision may reduce idle time and errors in production. , Increased training may reduce errors and make the staff more efficient, Closer monitoring of budgets may make the budgets more accurate. , Incorrect: Increase the price of the finished goods to increase volume of sales. , Decrease advertising to improve volume of sales without impacting on price. , A change of supplier is not an option for improving prices for materials. , Not updating machinery may make the usage of materials better and may also improve the efficiency of the labour force., No quality control over the materials used in production may reduce wastage, No supervision of staff may reduce idle time and errors in production. , No training may reduce errors and make the staff more efficient, No monitoring of budgets may make the budgets more accurate. ,

Possible solutions for variances - AAT - Management Accounting

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