Varience Analaysis

Variance analysis is a technique which is used to determine the difference between the actual & expected value. Variance analysis also explains the reason of difference actual & expected value. Variance analysis is closely related to manufacturers product cost.

Direct Materials Price Variance

Direct Materials Price Variance: Learning Objective of the articles: Define and explain “direct materials price variance” and its significance. How is it calculated? How direct materials price variance is interpreted? What are the reasons / causes of unfavorable or favorable materials price variance? Contents:

Direct Labor Standards

Direct Labor Standards: Learning Objective of the articles: Define and explain “direct labor standards” . How direct labor rate and direct labor efficiency standards are set? Direct labor price and quantity standards are usually expressed in terms of a labor rate and labor hours.