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sir kindly help me in this question my answer is not matching with examiner answer even i;m using the right logic but i can see the examiner has done it differently.i have solved many mcq’s with formula that i am using and all answers are correct but in this question m confusing as you can see… Price Planning Var
3500kg x $4.8-$4 = 2800(A)
Price Operational Var
3500kg x $5.25- $4.8 = 1575 (A)USAGE VAR
Difference in original std Vs Actual Usage x Std price/kg
4000kg-3500kg x $4 = 2000(F)
Usage Planning Var
4200kg-4000kg x $4 = 800(A)
Usage Operational Var
4200kg – 3500kg x $4 = 2800(F) but examiner anwers is different its usage operational variance is 3360 fav he is using a revsied std price instead of oringal std price same in the case of price planning varince he is using a revised std usage instead of actual kindly sir clarify my confusion…your clarification would be appreciated..thanksThere are two ways of calculating planning and operational variances, which give different answers. There is a good argument for both of the ways, and the examiner accepts either way.
The previous examiner did it one way, but the current examiner (who took over about five years ago) prefers the other way (which is easier anyway 🙂 ). My lectures (and current editions of study texts) do it the way that the current examiner prefers.(Securenet was a question set by the previous examiner and so the answer you have may well be doing it the way that he preferred.)
thanks for replying me sir i got it earlier when i was listening your lecture am using your technique which you are showing in your lecture which is current examiner way as well 🙂 now i’m satisfied 🙂 thankyou sir
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