责任中心和财务管理(英文版)(ppt 69页)

First-Level Variances：
-The first-level variance for a cost item is the difference between the actual and master budget costs.
-Variances are “favorable” if the actual costs are less than estimated costs.
-Variances are “unfavorable” if the actual costs exceeds estimated costs.
Decomposing Variances：
-What are flexible budgets?
-Flexible budgets recast cost targets in the planned or master budget to reflect the actual level of production.
-This allows comparisons of actual results  to targets based on the achieved level of production.
-What are planning variances?
-They reflect the effect of the volume change between the master budget and actual activity level achieved.
-What are flexible budget variances?
-They show the differences between the flexible budget and the actual results.
Decomposing Variances：
-What is the direct material efficiency or usage variance?
-It is actual quantity used at target or standard price less the flexible budget allowance at the planned or target price.
-Usage Variance = (AQ – SQ) × SP
-What is the direct material price variance?
-Price Variance = (AP – SP) × AQ

 

 

 

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