Dear sir,
Why are we always multiplying the variance with std.cost when computing material usage, laboure and variable OH efficiency variance??
Thankyou
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Variance analysis
10y ago#1You really need to watch the free lectures to see the reason - I cannot type out the whole lecture here.
We are trying to calculate separately the difference due to changes in price and rate from the differences due to using more or less than budgeted.
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