Question

Consider variance analysis in a service industry. Is it a good thing to use or a bad thing to use? Why? What good behaviors could it encourage? What bad behaviors might it encourage? Consider a service industry you are familiar with or something like a call center or tax practice in your discussion.

This question will help the students to understand why they need to study accounting. Question responses should be a minimum of 250 words, with a goal of 500 words with at least 1 outside, academic strength source. A response to at least two of your classmates is required.

Answer 1

Varence Analysis is the quambitahine inmoshigation of the diffenence between actual and planivel behaviour. This analysis is Used to maintain Controll over a business. The Variance Analysis Creates a major impact in the platform of Service Secher or Service industry that is , À Varience occur when expense Suchas revenue or labour are either more or less than what the company anticepated and budgeted for hospitality business such as hoo hotels and restarents can experience for vanences due to occupancy rates , check sizes, Supply Cost or labour losts being different than expeted there for il is a great deal to Use Vansance ů Service industry as speculations occurs tai daily.... it also encorages good behanours to the Sochor when Varience analysis is implemented Variences are analyzed to determine exactly how Csmcchined these differences have inpached Reveine and enwraces

Profit. Pt allows the owner or manager to determine what bused the varience. Naneine analysis makes it possible for owners and managers to make the correct strakrpic decerion to owncome problem before they cut into problems too much. , In case of a Postament of the Restaurant anticepakes Suning 5000 meals with an anerage check Size of $20 your anticipated renenue would be $100,000 if you end up Serning only 3000 meals, but average check Erge is $95. your revenue would be $87560 here the difference between your expected revence and the actual ramane IB Caled Varience in this ose there is a negahine keneme of $ 12300 if end up with higher than antecepated Revenue then there will be poseti me rerrenenud, Here we can understand clearly the Siguificance of Accounting knowledge in a business not only in Servie Sechon but also with in all business and Professiona CamScanner

Accounting not only a revenue Calculation methard it is the backborn of the business its notes role is to track a company's finances ih numerous forms a form Creelits, debits and Profitability to payroll and faxe filling it is a field driven by analytical analytics and analyhrel interpretation and the informabon densheal from Such functions provides a business with a record of its financial health and stability. there for we can say that a forson having good recounting accounting knowledge will be able to provide a good venience analysi. Scanned with CamScanner