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Variances

KKylie8y ago
Hi, do we have to learn how to calculate variances and prepare standard costing statement in P5?
kengarrettkengarrettTutor8y ago#1
It is unlikely that you would have to prepare a standard costing statement, but you should know how to calculate variances. For example, you might have to interpret them or you might be given a performance report where variances were not correctly calculated (eg budgets not flexed) or you might have to suggest how additional variances might help. To do these things you really have to have a good idea how variances are calculated.
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