Analysis of variance, Cost Accounting

ANALYSIS OF VARIANCE

When the actual are not similar from the standards, variance exists. Variance may be unfavorable or favorable. When the actual cost is more than the standard cost, it is called unfavorable variance. If actual cost is less than the standard cost, the difference is called favorable variance.  Variance analysis is the origin of cost control under standard costing and leads to cost reduction as well as revision of standards. The variance analysis supports to pinpoint responsibilities to the man- agers, who can exercise the method of 'management by exception'.  Variances are mainly divided into two groups,                                                                      

i)  arising out of price and

ii)  arising out of usage or volume.

Posted Date: 10/15/2012 7:19:35 AM | Location : United States







Related Discussions:- Analysis of variance, Assignment Help, Ask Question on Analysis of variance, Get Answer, Expert's Help, Analysis of variance Discussions

Write discussion on Analysis of variance
Your posts are moderated
Related Questions
Describe Operating Costing The Chartered Institute of Management Accountants, London defines "operating cost" as "the cost of providing a service." Services performed may be in

Q. Given the below, partial bond accretion table, what was the market rate of interest when the bond was issued?     Cash     Interest


Please kindly post some problems along with solutions so it is easy to understand..I am quite satisfied by the per-forma you have mentioned.. THANK YOU.

Quantitative and Qualitative Information in Accounting Systems The availability of information is the lifeblood of any type of management and cost accounting system. It is vi

Schedule of Work in Process The given schedule presents the calculations which pertain to work in the process. Pay attention to the details, noting that (1) direct materials

Standard Cost Card It is a card record of the Standard or expected costs in producing a specified output.  This gives the physical quantities of inputs and also their monetary

Dividends                                                                                        ................ Non-operating losses not passed through P and L A/c

Go the Hershey website to learn how to make Hershey chocolate. (There is also a "print friendly" version of the chocolate making process at the end of the video.) Review the proces

First In First Out or FIFO Method - Work in Progress This method considers merely those costs incurred throughout the recent period.  Equivalent units are calculated given a