Typical causes of material variances, Cost Accounting

Typical Causes of Material Variances

Price Variances

a) Paying lower or higher prices than planned.

b) Losing or gaining quantity discounts via buying in larger or smaller quantities than planned.

c) Buying higher or lower quality than planned.

d) Buying substitute material because of unavailability of planned material.

Usage (Efficiency) Variances

a) Lower or Greater field from material than planned.

b) Gains or losses because of use of substitute or lower/gather quality than planned.

c) Efficiency or inefficient machinery.

d) Lower or Grater rate of scrap than anticipated.

e) Poorly trained workers or extremely high quality labour.

Posted Date: 2/7/2013 6:48:22 AM | Location : United States







Related Discussions:- Typical causes of material variances, Assignment Help, Ask Question on Typical causes of material variances, Get Answer, Expert's Help, Typical causes of material variances Discussions

Write discussion on Typical causes of material variances
Your posts are moderated
Related Questions

DEMERITS OF BREAK EVEN POINT 1. It pays no attention to considerations like effect of government policy changes, changes in the marketing environment etc 2. Fixed cost, enti

Valuation of Inventory or Closing and Issues Stocks Valuation of inventory aims on attaching a monetary value in the issued or stores for production. It is useful in producing

what is cost

There are different activities undertaken through a business that prove to be either source or use of cash. These can be categorizes under three broad categories that are: investin

costing in respect of mathematical accounting a research project.

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At tha

Variable Overhead Expenditure Variance Budget for December 2003; Shs. Fixed Overheads 11,480 Variable Ov

Wayne Company's beginning and ending inventories for the month of June were as follows: June 1 June 30 Work in progress $145,000 171,000 Finished Goods 85,000 78,000 Production

High Bhd acquired shares in two other companies as follows: Additional information: i) Goodwill on acquisition of Swift was impaired by RM80,000 as