costing Flashcards
everything is conceptual... you just need to understand the stuff. baki , formulas will get formed naturally.
1
Q
material cost variance
A
Standard Cost – Actual Cost
= [(SQ x SP) – (AQ x AP)]
= material price variance + material usage variance
2
Q
material price variance
A
Actual Quantity x ( sp - ap)
price will be calculated on the actual quantity only.
3
Q
material usage variance
A
sp x ( sq-aq)
bcz , price constant hona chahiye … isliye keval standard price use krenge bro :)
