Posted: May 3rd, 2016

What are the possible causes of material price variance and material efficiency variance?

Using the adjusted trial balance of Ladner Environmental Services at the end of its year, December 31, 2011:
1. Prepare Ladner Environmental Services 2011 income statement, statement of owner’s equity, and balance sheet. List expenses in decreasing-balance order on the income statement and show total liabilities on the balance sheet. Write a short paragraph describing how the three financial statements are linked. How will what you have learned in this problem help you manage a business?
2. Which financial statement reports Ladner Environmental Services result’s of operations? Were 2011 operations successful? Cite specifics from the financial statements to support your evaluation.
3. Which statement reports the company’s financial position? Does Ladner financial position look strong or weak? Give the reason for your evaluation

In not less than 200 words and not exceeding 250 words for each question, submit logical answers to the following questions:

1. Discuss the relationship between variance analysis and management by exception.
2. What are the possible causes of material price variance and material efficiency variance?
3. Compare and contrast static budget and flexible budget.
4. Identify and discuss the link between variance analysis and responsibility accounting.