Labor Rate Variance – Meaning, Formula, Example, and More
Labor Rate Variance or LRV is the variation between the actual and expected or standard cost of labor. This variance is due to the… Read Article
Variances
Labor Cost Variance – Meaning, Formula, and Example
Labor Cost Variance is the difference between the standard cost of labor for the actual output and the actual cost of labor for the… Read Article
Material Yield Variance – Meaning, Formula, Example, and More
Material Yield Variance is the variance or the difference between the standard quantity of material consumption estimated and the actual amount of material consumed… Read Article
Material Mix Variance – Meaning, Example, and More
Material Mix Variance is a concept that is used in the manufacturing world. Manufacturing companies make a huge amount of R&D spending in determining… Read Article
Why is Budgeting Important?
Budgeting is the projection of income and expenditures that one expects an organization to earn and incur over a given period of time, usually… Read Article
Direct Materials Quantity / Usage / Volume Variance
As the word implies, Direct Materials Quantity Variance refers to the deviation resulting from the difference in the expected and actual quantity of direct… Read Article
Production Volume Variance: Meaning, Formula, Limitations, and More
Production Volume Variance: MeaningProduction Volume Variance is the difference between budgeted overheads and actual overheads. In other words, as the name suggests, it compares… Read Article
Flexible Budget Variance
What is a Flexible Budget Variance?A flexible budget is a financial plan with scope for change in the value of its key parameters. It… Read Article
Cost Variance – Meaning, Importance, Calculation and More
Cost Variance (CV) is a term that relates to the budget. As you will be aware, Variance is the difference between the cost and… Read Article
Fixed Overhead Volume Variance
What is Fixed Overhead Volume Variance (FOVV)?Fixed overhead volume variance is stated as a figure which is equal to the standard fixed overhead less… Read Article
Budgeting Cycle – Meaning, Importance, Phases and More
Budgeting Cycle or budget cycle refers to the steps or phases that a company or an individual, or a government organization needs to go… Read Article