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Why are variances generally segregated in terms of a price variance and a quantity variance?
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Why are variances generally segregated in terms of a price variance and an efficiency variance?
Efficiency Varian materials and direct labor, the variances were recorded in specific general ledger accounts.
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
What are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
When computing standard cost variances the difference between actual and standard price multiplied by actual quantity yields what?
Price Variance
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
Why are variances generally segregated in terms of a price variance and an efficiency variance?
Efficiency Varian materials and direct labor, the variances were recorded in specific general ledger accounts.
Causes material quantity variance?
causes of labor rate variances
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
What is inventory variance?
An inventory variance report shows the difference between previous recorded inventory quantity and correct inventory quantity which is discovered immediately after a physical count. It also reports on the value difference the quantity variances caused.
What is inventory variance report?
An inventory variance report shows the difference between previous recorded inventory quantity and correct inventory quantity which is discovered immediately after a physical count. It also reports on the value difference the quantity variances caused.
What are adverse variances?
Adverse variances means unfavourable variance which is actual expenses are more than budgted variance.
When computing standard cost variances the difference between actual and standard price multiplied by actual quantity yields what?
Price Variance
What are the variances in a 4 variance analysis?
efficiency variance, spending variance, production volume variance, variable and fixed components
What is cost price variances?
Price variance is the actual unit cost minus the standard unit cost, multiplied by the actual quantity purchased. The variance is said to be unfavorable if the actual price of the materials is higher than the standard price of the materials.
Can additive variance have a negative value?
No. Variance is always positive and so the sum of variances must also be positive.
In an analysis of variance which is directly influenced by the size of the sample variances?
df within
In an analysis of variance is SS directly influenced by the size of the sample variances?
Yes it is.
