1. What is the concept of Outsourcing? What is the rational that corporate managers use in determining Make-or-Buy decisions.
2. What are the factors that influence corporate managers to drop a product or service.
3. What is a zero-based budget? Participative budget?
4. Variance analysis Perform a basic variance analysis for Mike Tire Manufacturing.
Flexible Budget Actual Cost Flexible Budget Variance
Direct Materials $75,500 $74,000
Direct Labor 101,250 104,650
Variable overhead 34,500 33495
Total Manufacturing Cost $211,250 $212145
5. How is a fixed overhead budget variance computed? How is a fixed overhead volume variance computed?
6. How is variance analysis used by corporate management?
