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

Security analysis and portfolio management, Security Analysis and Portfolio...

Security Analysis and Portfolio Management Define Capital Market Line and how is it dissimilar from Security Market Line. Describe with illustrations?

Break even Analysis, I am part of a marketing group, and we are working on ...

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

What is the flexible budgets, What is the Flexible budgets A flexible ...

What is the Flexible budgets A flexible budget consists of a series of budgets for different level of activity. It therefore varies with the level of activity attained. A flex

What are the advantages of contributionmargin analysis, What are the Advant...

What are the Advantages of contributionmargin analysis the concept of contribution is variable aid to management in making managerial decisions . a few benefits resulting from

Xs strategy, X's Strategy X will like to divide his play between his ro...

X's Strategy X will like to divide his play between his rows in such a way that his expected winnings or losses when Y plays the first column will be equal to his expected winn

Transfer pricing, Transfer pricing sometimes entails using different transf...

Transfer pricing sometimes entails using different transfer pricing systems: one for tax purposes, and one for internal decision making, even though maintaining two systems can be

Define materials cost variance, Define Materials cost variance Material...

Define Materials cost variance Material cost variance (MCV) is the difference between the standard cost of material specified and the actual cost of materials used." It is the

State overhead expenses, State overhead expenses It is to be noted tha...

State overhead expenses It is to be noted that the term overheard has a wider meaning than the term indirect expanses. Overheads include the cost of the indirect material and

Budget, advantage and disadvantage of incremental budget

advantage and disadvantage of incremental budget

Continuous probability distribution, CONTINUOUS PROBABILITY DISTRIBUTION (U...

CONTINUOUS PROBABILITY DISTRIBUTION (USE OF NORMAL DISTRIBUTION) In reality the C-V-P variables might take any values in a continuous range. It could therefore be more appropriat

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages