Standard costs, material, labour and sales variances, splitting variances into price/rate and usage/efficiency, and interpreting favourable and adverse variances.
Standard costing
A standard cost is a planned cost per unit. The difference between standard and actual is a variance: favourable (F) when actual is better than standard, adverse (A) when worse. Variances are split to locate the cause.
Viewing only
This content is free to read on superexams.com and cannot be printed or downloaded.
Read the full note, free
Create a free account to read this note in full. Every free account gets 2 complete revision notes, no card needed.