Standard Costing and Basic Variance Analysis (part 1)

Basic Variance Analysis: Please note that this lecture relates to Chapter 13 of the Course Notes and not Chapter 12 as stated in the lecture.

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    • Profile photo of John Moffat says

      There is no point in comparing actual expenditure with original budget expenditure, if we are using budgets for control or to measure managers performance.

      The reason is that if (for example) we produced two times as many units as we originally budgeted, then obviously we would expect to have higher costs. So we flex – see how much we would have budgeted for the actual production, and then it makes sense to compare with what we actually spent.

  1. Profile photo of JACOB says

    Despite high speed broadband service I cannot watch the videos. It will only show blank as if it going to play and yet it does not play. Even the introductory video does not play but I hear the audio at the background.

    • Profile photo of John Moffat says

      The video is working fine, and so the problem must be at your end (although apart from the heading, I do not write anything until 1.50 into the recording).
      You should visit the support page (the link is above) and hopefully you will find a solution there.

    • Profile photo of John Moffat says

      It is hours when they are not working but were still being paid (we call it idle time).

      It could be (for example) that the machines broke down for a few hours so the workers could not work, but maybe we still had to pay them.

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