Planning and Operational Variances: Please note that this lecture relates to Chapter 14 of the Course Notes and not Chapter 13 as stated in the lecture. The example is on page 78.
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[jwplatform YYx77SLT]
where did the 20000 come from in the operating statement as the original budget profit??????
Hi john
If I am not wrong so in planing variance we always use revised standard quantity and revised standard cost in place actual quantity? And in operational variance revised standard quantity and cost is used in place of聽standards. Is that correct?
There are two ways of doing planning and operational variances. They give different answers, but the examiner has said she accepts either way.
The previous examiner did it the way in the lecture (which is actually the more sensible way), but the new examiner does it an easier way (the way you write).
Best is to use the exam question Truffle to learn from.
Thank u so much. You mean I can apply an approach I asked about so I can gain mark. If approach is applied correctly. Right SIR?
Yes – correct 馃檪
John, please ignore above question. Obviously part of my problem is a lack of attention to all of the information given! Having looked at the question again I can see where the variance arises. Apologies..
Regards
Carmel
Hi John,
Example 1, Planning & Operating variance – when you do the Operating Statement you have original budget profit at 20,000. Should this not be 23,000…..?
Carmel
It was a mistake – sorry 馃檨
The correct answer is at the back of the course notes 馃檪
we need to see the examples the lecture uses so that we can cach up with him .Not jst an verbal examples plss….
I assume that you have read what is written immediately above the lectures and that you have downloaded the Course Notes?
All our lectures are using our Course Notes – they are lecture notes – and there is no point in watching them without the notes!! The examples used are all printed in the notes.