What question did this study set out to answer?

To analyze alternative methods for decomposing total cost changes into price and quantity components.

Laspeyers Indexes for Variance Analysis in Cost Accounting: A Comment.

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Comment examines variance analysis methods in cost accounting, suggesting improved decomposing techniques.

To analyze alternative methods for decomposing total cost changes into price and quantity components.
Developed formulation for traditional variance analysis in cost accounting.
Expressed changes in prices and quantities in percentage terms.
Suggested method for allocating joint variance between price and quantity.
Specified time paths of unit price and usage rate over the period.
Utilized analytical and computer enumeration techniques to find limits for price and quantity variances.
Outlined a procedure for decomposing total cost changes to solely price and quantity factors.
Demonstrated potential elimination of joint variance in cost analysis under specific conditions.
Established analytical limits for price and quantity variances as subperiods increase.

Werner G. Frank (1976) studied this question.

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