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I watched lecture on variances & advanced variances in one go and I’m confused because there so many variances to learn. I will rewatch all of the videos again but would prefer if tutor/anyone can clarify my questions and gave me some tips on how to approach this variances topic before I rewatch it again.
Please explain
1) How to differentiate between “standard” unit or “actual” unit? How & where do I know on how to use which unit on which situation of the questions?
2) How to differentiate which one is expenditure variance / usage variance / efficiency variance?
3) In the end the questions always match with the 1st calculation, how do I know which variance to choose and to calculate to match with the 1st calculation ?
4) How to differentiate each variances? any tips to differentiate them? It seems like the questions are so similar and calculations are repetitive.
5) How to approach the question? Example if the question is about material? where should we start first? Or if the questions is about labour, where should we start first?Thanks in advance.
You obviously need to watch the videos again.
You’re asking us so much you need to watch and try to understand.
it will make it quite clear in a question what information is for the standard and which is actual.
Variances are the difference between standards and actual.
It will say quite clearly in a question what information you are given and therefore what question you are being asked.
So is it materials on price and or usage or is it labour on rate and or efficiency?
Is it variable overhead or fixed?You could have small OT questions, worth 2 marks or small questions in section B or you could get a large 20 mark question in section C
My advice is to watch the videos and read the lecture notes again!!
Send each question separately and clearly ask what it is you want to know.
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