Accounting

Introduction In this article, we will cover the sales price variance analysis. It is sometimes called selling price variance. Variance analysis is one of the key tools in performance management. IT gives management a chance to implement the higher standards and revise the lapses in planning and implementation. Definition In simple terms, the variance can

Introduction Variance analysis is the most important tool for budgeting and control cycles for any company. A total sales variance indicates the under or over sales in comparison to the target sales. Total Sales variance comprises two main parts of Sales Price Variance and Sales Volume Variance. The Sales volume variance can be further analyzed

Introduction Variable overheads account for an important and significant part of the total operating cost for any business, particularly in the manufacturing business. Variable overheads change with operating efficiency and contribute an integral part of total variable cost. The Marginal costing method accounts for the variable overheads to calculate the contribution margin. Variances in planned

Introduction In this article, we will cover in detail the Direct Labor Efficiency Variance. Commonly, human capital is called the most precious asset for any organization, skilled labor for manufacturing companies in particular hold an important for efficient manufacturing. For companies producing a large number of different products and utilizing skilled labor, labor efficiency holds

Introduction In this article, we will cover the Direct Material Price Variance. As you know, variance analysis is one of the key performance management tools, where implemented controls are measured and revised. In any business, continuous improvement and quality management concepts cannot be achieved unless performance measurement is done regularly. Definition Typically, we commonly known