- This topic has 3 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
In the Secure net ( Dec 09 Q) , the answers for planning price variance is $3360 (A) and operating usage variance is $3360 (F). The examiner has taken revised kgs (Op.) in price variance and revised price in usage variance (Op.). My question is why they took revised figures in both these cases while we normally take actual quantity to calculate planning price variance and std price to calculate o[perational usage variance?
As you will know if you have watched my free lectures, there are two ways of calculating planning and operational variances. They give different answers, and the examiner accepts either approach.
The previous examiner (who set SecureNet) preferred one approach, but the current examiner prefers the other approach (which is actually a lot easier).
The way that I do planning and operational variances in my free lectures is the way that the current examiner prefers (and is the way that current editions of Study Texts do it as well).
Again, either way is always accepted. If you have already learned one way then stick to it. Otherwise watch my free lectures and learn that way 🙂
- The topic ‘Secure Net’ is closed to new replies.