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Variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Variance

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
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  • April 20, 2021 at 6:07 am #618257
    rosin
    • Topics: 15
    • Replies: 13
    • ☆

    Sir,
    (In the context of material usage variance:operational)

    (R.SQ-A.SQ)
    What would be the price to be multiplied with?
    Revised standard price or
    actual price

    Sorry if it’s a silly doubt

    April 20, 2021 at 6:43 am #618272
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49601
    • ☆☆☆☆☆

    The current examiner prefers that you use the original standard cost.

    (Some people prefer using the revised standard cost and there is an argument for either. It gives a different answer but the examiner accepts either. I explain this in my free lectures and my lectures do it the way that the current examiner prefers, which is the easiest and quickest way as well 🙂 )

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