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What is Direct material cost variance
It can be defined as the difference between the standard costs of direct material specified and the actual cost of direct material used. This variance has two components:
1) Material price variance 2) Material usage variancea) Material mix varianceb) Material yield variance
RELEVANT COSTS FOR NON-ROUTINE DECISIONS A relevant cost is a cost that is appropriate to a specific management decision. To be relevant, a cost should be: 1) Future cost
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