Outsourcing, budgets, & variance analysis

I’m studying for my Accounting class and need an explanation.

Complete: a minimum of 1,000 words (total assignment) and three scholarly sources.

Many questions in both the Complete sections will have more than one part. Be sure to answer each part of each question. If a question requires mathematical calculations, in order to meet the word count quota, after solving please explain the calculations. Apply research information from other websites or periodicals.

Complete sections are to be in APA format

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?

Outsourcing, budgets, & variance analysis

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