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
Ed Mettway was concerned about his firm's ability to acquire the necessary property, plant, and equipment to take advantage of steadily increasing sales. Touring Enterprises, estab

A Government issued a number of index-linked bonds on 1 June 2000 which were redeemed on 1 June 2002.  Each bond had a nominal coupon rate of 3% per annum, payable half yearly in a

process costing new practices

Harriet Ltd is a trading company set up a number of years ago with 5,000 £1ordinary shares issued at par. In order to expand the production facilities it needs to raise a further £

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


XYZ Company is a family-owned bicycle manufacturing company located in Stow, Ohio. Until recently,it had maintained slow but steady growth in producing and marketing its only prod


Park & Morgan, a law firm, is considering opening a legal clinic for midde- and low income clients. The clinic would bill at a rate if $18 per hour. It would employ law students as

What are the factors affecting working capital requirements