Strategic Control of Capacity-Related Manufacturing Costs Obtain from your library (or instructor or course pack, as appropriate) a copy of the following article: K. Snead, D. Stott, and A. Garcia,...

Strategic Control of Capacity-Related Manufacturing Costs Obtain from your library (or instructor or course pack, as appropriate) a copy of the following article: K. Snead, D. Stott, and A. Garcia, “The Causes of Misapplied Capacity-Related Manufacturing Costs and Corresponding Reporting Implications: A Conceptual Perspective,” Journal of Accounting Education 28 (2010), pp. 85–102 (available at: http://www.sciencedirect.com/science/article/pii/S0748575111000170). Required After reading the above-referenced article, answer the following questions: 1. In general, how does this article relate to the material covered in this chapter? 2. What do the authors of this article mean when they refer to misapplied fixed (i.e., capacity related) manufacturing overhead costs? 3. Into what components do the authors feel the production volume variance should be decomposed? How are each of the component variances calculated and interpreted? 4. What is the connection between the variance-decomposition model proposed by the authors and the strategic control of capacity-related manufacturing costs? 5. What do the authors of this article indicate are the financial-reporting consequences of their proposed framework?