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direct material yield variance myv it has been described by the icma london as the variation between the standard yield of the actual material
materials mix variance it can be described as that portion of direct material usage variance which is the variation between the actual quantities
material usage variance muvthis is the variation between the actual quantity of material consumed and standard quantity which should have been
material price variance mpvthis may be described as the difference amoung the actual price and the standard price of the materials consumedmpv
direct material cost variances dmcvthis variance is a general difference in the standard direct material cost and the actual direct material cost
types of variancesvariances are computed for the entire three basic elements of cost - direct labour direct material and overhead variance1 direct
analysis of variancewhen the actual are not similar from the standards variance exists variance may be unfavorable or favorable when the actual cost
limitations of standard costing1 it may be very difficult to fix standards for all operations2 incorrect standards
advantages of standard costing1 it offers a yardstick for measurement of performance2 it helps management by
standard costingstandard costing is a method which uses standards for costs and revenues for the idea of control by variance analysis it can be used
utility of break even point in managerial decision making1 it assists in determination of sales mix2 it assists in exploring new markets3 it assists
demerits of break even point1 it pays no attention to considerations like effect of government policy changes changes in the marketing environment
angle of incidence it is an angle that is created when the entire sales line intercepts the entire cost line from below in the breakeven chart it
contribution it is the variation between the marginal cost of sales and sales and it contributes towards fixed profit and expenses it is differ
assumptions of break even analysis1 fixed costs for all time remain constant2 all costs are divided into fixed and variable costs3 selling price will
break even analysisbreak even analysis is a broadly used technique to study cost-volume-profit relationship it can be explained as - a system for
uses of cvp analysis1 it allows preparation of flexible budgets2 it provides help in forecasting accurate profit3 it aids in formulating price
cost profit volume analysiscost profit volume cvp analysis is an essential tool for profit planning it can be explained as - a managerial tool
marginal costing and differential costing1 differential costing can be used both in case of marginal costing and absorption
differential costingmarginal costing is often confused with differential costing the word differential costing means a technique used in the
marginal costing vs direct costingdirect costing is the method where only direct costs are measured while calculating the cost of the product
marginal costingas per the chartered institute of management accountants london the phrase marginal cost means - the amount at every given volume of
cost concepts classification of costs1 according to functionsadministration cost office costselling cost production cost factory cost
elements of costnearly there are three elements of cost - labor material and expenses these are additional divided into indirect and direct material
limitations of cost accountingcost accounting similar to additional branches of accountancy is not an precise science although is an art which was