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Compare Standard costing vs variance analysis?
Compare Standard costing vs variance analysis?"
What is variance?
In most production management systems, a "Planned" quantity and material cost is calculated based on the associated Bill of Materials (BOM) and Operatons being performed (Route) creating labor and overhead related costs. The "Actual" quantities, material costs, and labor/overhead costs are issued to a Work in Process (WIP) account and the quantities/values of the produced items are recieved from the WIP account. A variance usually occurs when there is a difference between the issued material cost plus labor and overhead and the recieved material cost of the produced item. The reasons for these variances can be differences in planned vs actual quantities, differences in system or planned cost of materials, labor, or overhead vs actual cost, or any other potential reason for an unplanned difference.
Why are variances squared?
The variances are squared so that all deviations above and below the mean become positive values. Taking the square root of the variance then gives a measure of the differences from the mean: the standard deviaton. Squaring the deviations also makes the bigger differences stand out. Look at 100 squared vs 10 squared.
Quantitative vs qualitative?
Qualitative research involves analysis of data such as words (e.g., from interviews), pictures (e.g., video), or objects (e.g., an artifact). Quantitative research involves analysis of numerical data.
New American Standard Version vs KJV?
Here it is always advisable to ead the K.j.V. Bible as the English is more easy and correct to start on.
