Material price variance (mpv), Cost Accounting

Material Price Variance (MPV)

This may be described as the difference amoung the actual price and the standard price of the materials consumed.

MPV = Actual quantity used (Standard price - Actual price)

Reasons for Price variance may be

  • "Emergency buying" in smaller quantities
  • Alteration in the market price of direct material
  • Carriage, freight and other charges absorbed in place of being charged to the suppliers
  • Cash discount not availed
  • Claims not made on the suppliers for short receipt of materials or substandard materials.
Posted Date: 10/15/2012 7:24:49 AM | Location : United States







Related Discussions:- Material price variance (mpv), Assignment Help, Ask Question on Material price variance (mpv), Get Answer, Expert's Help, Material price variance (mpv) Discussions

Write discussion on Material price variance (mpv)
Your posts are moderated
Related Questions
You have been asked to prepare a cash budget for Whitborrow plc for the next three months, October, November and December. The Managers are concerned that they may not have suffici

Determine Inventory Costs Mary Cosmetics sells specialty lipstick for a retail price of $12.25 each. Mary purchases each tube for $5.00 and pays the following additional amounts: $

Example of Contract Account  A company has been awarded a contract to build a house.  It is a contract Number 45 for the company and the contract price is shs.2.65 millio

what are the classifications of labour costs? what is employee psyche?

what is regression analysis and its applicability to the course of cost accounting

rocess costing Prepare a spreadsheet to solve the following process costing problem. Review the four process costing videos provided in Interact Resources. Note that in the situati

Cost Components Companies which manufacture a product face an elaborated set of accounting issues. Additionally the usual accounting matters related with selling and administra

tell me about debentures

Usefulness of Variance Analysis Carefully note that while prices are being charged to production, it can be done at the actual or standard price. For purposes of making varian

Q. Given the below information, what is the dollar amount that the LIFO liquidation added to gross margin?   Number of Units Price per Unit