State material price variance, Managerial Accounting

Assignment Help:

State Material price variance

Difference among standard price and the actual price of the material is the material price variance. This variance arises because of various factors such as:

Change in market price

Uneconomical size of purchase order

Not availing of discount facilities

Payment of more/less freight cartage charges etc.

Transits loss, if barns by the purchase

Change in duties and taxes etc

Material price variance is the direct responsibility of the purchase department. Certain situation may arise when material price variance is made uncontrollable, as price depends on the factors of demand and supply in the market. In such a case the purchase department or other personnel is not accountable for the variance.

Material price variance is stated as:

Defective equipment and tools

Use o inferior material

Change in composition of material mixture

Yield form material more/less etc.

 


Related Discussions:- State material price variance

What are the objectives of intra company transfer pricing, What are the Obj...

What are the Objectives of Intra company transfer pricing The objectives of Intra company transfer pricing are: 1) Evolution of performance and efficiency of each division.

Breakeven analysis, I am part of a marketing group, and we are working on a...

I am part of a marketing group, and we are working on a project for a local cable company,they currently serve 3,200 customers and sell 50 wireless boxes a month,what I need to do

State the price determination under the market condition, State the price d...

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Markov chains, Markov Chains: Markov Chains are named after the Russia...

Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu

What is the meaning cost reduction, Normal 0 false false fa...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4 What is the Meaning Cos

Internal Controls, What is the definition of internal controls

What is the definition of internal controls

Explain term contribution - contribution margin analysis, Contribution marg...

Contribution margin Analysis Contribution Contribution is the  difference between sales and variable cost or marginal cost of sales . if may also be defined as the excess

Working capital management, A managerial accounting strategy focusing mainl...

A managerial accounting strategy focusing mainly on maintaining efficient levels of both components of working capital that is current assets and current liabilities, with respect

Operating cycle period, Period of operating cycle implies that total sum of...

Period of operating cycle implies that total sum of number of days included in the various stages of operation commencing from the purchase of raw materials and ending along with c

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd