ACCA F5 Mix and Yield variances
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sir is expenditure variance and price variance the same ?
Yes – they both mean the same 馃檪
Dear sir, isn’t Total Material Cost Variance and the Material Price Variance the same thing??
No it isn’t.
The total cost variance is the different between the actual cost and the standard cost of the actual production. Just as with basic Paper F2 variances, the material price variance is just one part of the analysis of the total cost variance.
Sir,
Will you please explain that why usage variance is calculated by adding mix variance and yield variance and not simply just in the following way:
ACTUAL MATERIAL USED=15200 KG
STANDARD MATERIAL THAT SHOULD BE USED =15000KG
=(200KG)(ADVERSE)
(133kg of X and 67 kg of Y)
i.e.$533(ADVERSE)
Thanks in advance.
Sorry it is 200kg(adverse)i.e.200dollars only.
Answer is similar from this method also.
But the question is why is it yield variance +mix variance=Usage variance???
Sorry again for the inconvenience caused.
You can calculate it either way – that doesn’t matter. The yield and mix variances are analysing the reasons why the usage is different from standard.
Thanks a lot
You are welcome 馃檪
dear sir great lecture, doing great job.god bless u love and respect from pakistan. 馃檪
Thank you for your comment 馃檪
my apologies
Hi
Could you please clarify the difference between Total Variance and Expenditure Variance ?
As with all expenses, the total variance is the difference between the actual total cost and the standard total cost for the actual production.
The expenditure variance only looks at the effect of a change in the purchase price, which is one part of the analysis of the total variance.