Standard Costing and Basic Variance Analysis (part 2)

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.

ACCA F5 lectures | Download ACCA F5 notes


    • Profile photo of John Moffat says

      Yes it will give the same answer.

      If you multiply through your equation by the actual quantity, then it gives actual quantity at standard cost – actual quantity at actual cost.

      However it is much more important to understand the logic than to just learn formulae – the examiner always checks that you understand what is happening.

    • Profile photo of John Moffat says

      Our lectures and course notes will prepare you for at least 90% of the exam, if not more.
      However you must get hold of Revision/Exam Kits – they contain lots of questions for practice and practice is the most important thing of all.

      Start studying for F5 now – the syllabus will not change for June 2014.
      However, wait a few months for F6 because the tax rules will be different – new course notes and new lectures will be uploaded in February.
      So best to do as much as you can on F5 now, and then start on F6 later.

  1. avatar says

    Please i want to know if the use of formula will give me a full mark,because i find it very simple and easy like for Material variance :
    SQ SP
    }usage variance
    AQ SP } Total variance
    }price variance
    AQ AP
    when this fumula is used do i still get my full mark?
    or do i need to explain to the examiner what AQ,SQ,AP,SP means?

    • Profile photo of John Moffat says

      No – it is fine to use abbreviations.
      Just make sure you show your workings as well, so that if you have picked up a wrong figure by mistake, then the examiner can still give you some marks for trying to do the right thing :-)

  2. avatar says

    help me. I’m confuse. This is with regards to direct materials price variance. I found somewhere in the net that this variance is computed either at purchase or at the time when direct materials is used. I also found out that what is favorable is to compute this at purchase, because it simplifies bookeeping. Now, I’m confused with the bookeeping part. It says because the inventory is recorded at standard cost, but still i’m confused with the whole idea. would anyone help me?

  3. avatar says

    I have some problems of watching
    Since the video form becomes flash instead of simple flv etc.there is no more buffering records.Our internet is of pool speed,and it’s hard for us to watch online.
    Can you mend it?

    • Profile photo of admin says

      if you are in china, you may have to use VPN – at least this is what prevented some students from China in the past.. I imagine it is the restriction of chinese government..
      and the videos now are playing/streaming without the need for Flash player, try Apple Safari browser or Google chrome

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