Share 'Standard Costing and Variance Analysis - PPT'
Share 'Standard Costing and Variance Analysis - PPT'
Share 'Standard Costing and Variance Analysis - PPT'
•Standard Costs
and Variances
10-2
Standard Costs
Standards are benchmarks or “norms” for
measuring performance. In managerial accounting,
two types of standards are commonly used.
Variance Analysis
Variance Analysis
Spending Variance
(3) – (1)
10-12
Spending Variance
(3) – (1)
10-13
Spending Variance
(3) – (1)
10-14
Spending Variance
(3) – (1)
10-15
Spending Variance
(3) – (1)
10-16
Learning Objective 1
Materials Variances:
Using the Factored Equations
Materials price variance
MPV = (AQ × AP) – (AQ × SP)
= AQ(AP – SP)
= 210 kgs ($4.90/kg – $5.00/kg)
= 210 kgs (– $0.10/kg) = $21 F
Learning Objective 2
Quality of production
supervision.
Quality of training
provided to employees.
Production Manager
10-42
Learning Objective 3
Advantages
Standards can Standards can
greatly simplify support responsibility
bookkeeping. accounting systems.
10-65
End of Chapter 10