• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Operational price variance (two approaches in Cima P1 Course Book – BPP)

Forums › CIMA Forums › Operational price variance (two approaches in Cima P1 Course Book – BPP)

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by ailko.
Viewing 1 post (of 1 total)
  • Author
    Posts
  • July 17, 2024 at 7:49 pm #708640
    ailko
    Participant
    • Topics: 2
    • Replies: 0
    • ☆

    Dear All!
    I would like to ask for your help regarding the method of calculating Opeational price variance.
    I have run into 2 caculation method in my CIMA P1 Course book.

    Example:
    Budget: raw meterial cost per unit of product: 2kg of cooper per 1 usd per kg
    Actual: 1 000 units produced at a cost of 3 250 usd for 2 200 kg of cooper.

    Material price operational variance:
    Revised standard cost for revised standard kg for actual output 1 000 * 2 * 1,5 = 3 000 (why not 2200*1,5)

    Actual cost 3 250

    My question relates to the “Revised standard cost for revised standard kg for actual output” part.

    Why the budgeted usage kg/unit is used instead of the actual usage of kg/unit? In this very book in a different example the actual usage of kg/unit is being used, the same way as OpenTuition tutor is showing it in the video.

    Can you please tell me under what condition can the budgeted usage kg/unit used in the calculatin of “Revised standard cost for revised standard kg for actual output” part? Thank you in advance for your help.
    Best regards Alexander

  • Author
    Posts
Viewing 1 post (of 1 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • sammckenzie on Multi-product Cost Volume Profit analysis – ACCA Performance Management (PM)
  • sxshwat on The nature and structure of organisations – ACCA Paper BT
  • Mixe on Conceptual Framework – ACCA SBR lecture
  • John Moffat on Accounting for Limited Companies –  The statement of Profit and Loss – ACCA (FA) lectures
  • aksemurtaza5 on Accounting for Limited Companies –  The statement of Profit and Loss – ACCA (FA) lectures

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in