Typical causes of material variances, Cost Accounting

Assignment Help:

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.


Related Discussions:- Typical causes of material variances

Assignment, What is the major value of the weighted cost of capital calcula...

What is the major value of the weighted cost of capital calculation for the firm?

Decision analysis , can you guys do a project which is due in 2 weeks

can you guys do a project which is due in 2 weeks

Motivation - behavioural aspects of standards, Motivation - Behavioural Asp...

Motivation - Behavioural Aspects of Standards Variance analysis and standards setting requires to be carried out like it motivates managers and other employees. It should not

#title.Budget., Ask The James Company, a wholesaler, budgeted the following...

Ask The James Company, a wholesaler, budgeted the following sales for the indicated months June 2004 July 2004 August 2004 Sales on account 1800,000 1,92

Overhead budgets for 2011., Atkinson's Reliable Tools makes two products th...

Atkinson's Reliable Tools makes two products that use similar raw materials: #587Q and #253X. Estimated production needs for a unit of each product follows. #587Q #253X Steel (in p

Constant gross margin rate, Constant Gross Margin Rate This method ass...

Constant Gross Margin Rate This method assumes that every product contributes an equal percentage of gross profit for every shilling of sales. It works back from gross margin

Estimate total money using marginal and average tax rate, Thomas Crown expe...

Thomas Crown expects to earn the following stream of annual income for the next four years:- $41,000; $45,000; $38,000 and $50,000. Although he has adopted the Pay Yourself First s

Cost accounting, Cost Accounting Cost accounting has been defined via ...

Cost Accounting Cost accounting has been defined via many accounting scholars in different forums. There is no single watertight definition of cost accounting, however the var

Determine the total compensation cost, On January 1, 2013, VKI Corporation ...

On January 1, 2013, VKI Corporation awarded 12 million of its $1 par common shares to key personnel, subject to forfeiture if employment is terminated within three years. On the gr

Calculate the total variable cost of 6, A company has developed a new produ...

A company has developed a new product which it will launch next month. During the initial production phase the company expects to produce 6,400 units in batches of 100 units. The f

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