Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › variance
- This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
- AuthorPosts
- November 25, 2019 at 7:30 pm #553746
sir, can this formula be used for material planning and operational variance
price operational variance
(actual quantity *actual price) – (actual quantity* revised standard price)quantity operational variance
(actual quantity* revised standard price) – (revised standard quantity *revised standard price)price planning variance
(revised standard quantity *revised standard price) – (revised standard quantity * original standard price )quantity planning variance
(revised standard quantity * original standard price ) – (original standard quantity * original standard price )November 26, 2019 at 8:36 am #553782There are two ways of calculating planning and operational variances. They result in different answers but are both sensible, and both methods are accepted by the examiner.
The way I explain in my free lectures is the way that the current examiner prefers and is the easiest way as well. (The way you have written is the way that the previous examiner used to prefer).
Do watch my lectures – they are a complete free course for Paper PM and cover everything needed to be able to pass the exam well.
- AuthorPosts
- You must be logged in to reply to this topic.