Price Variance – Meaning, Calculation, Importance and More
Price Variance is the difference between the actual price and the standard price of a product or service. It can be for both cost… Read Article
Variances
Budgeting vs Forecasting – All Differences Between Them
A company uses various tools to design plans to take the company ahead. Two such tools are budgeting and forecasting. Both tools help organizations… Read Article
Budgetary Slack
What is Budgetary Slack?Budgetary slack is the intentional overestimation of expenses & losses or underestimation of incomes & profits in the budget. The business… Read Article
Budget Control
Budgetary control is the process of preparing budgets for the future period, comparing the standards set by the budget with the actual performance, finding… Read Article
Pre-determined Overhead Rate – Meaning, Calculation And More
A Pre-determined Overhead Rate is a projected ratio of overhead costs, which is determined at the start of the year. A company determines this… Read Article
Variance Analysis Report
What is a Variance Analysis Report?Variance Analysis Report is useful to identify the gap between the planned outcome (The Budgeted) and the actual outcome… Read Article
Sales Volume Variance
Sales volume variance (or Sales quantity variance) is nothing but the dollar variance in total sales as a result of ‘over or underachievement of… Read Article
Budget Models
What is a Budget?A budget is a financial plan of expected cash inflows and outflows that a business generates. A sound budget guides the… Read Article
Variance Analysis Formula with Example
The variance analysis formula is the key to preparing variance analysis reports. For each type of variance, there is a plug-and-play variance formula to… Read Article
Material Variance
Material Cost VarianceThe difference between the standard cost of direct materials specified for production and the actual cost of direct materials used in production… Read Article
Variance Analysis
What is Variance Analysis?Variance Analysis deals with an analysis of deviations in the budgeted and actual financial performance of a company. The causes of… Read Article