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PRICE/RATEActual Quantity Purchased (Actual Price - Budgeted/Standard Price)
-Often called "Purchase Price Variance"-Can relate to actual DM that was "Rec'd" by an organization-Influenced by Purchasing managerQUANTITY/USAGE/EFFICIENCYBudgeted/Standard Price (Actual Quantity Used - Budgeted/Standard Quantity Allowed for Actual Input)
-Standard Quantity is often "Std Input x # Units Produced"-Can relate to actual DM that was "Used" by an organization-Influenced by Production manager-Qty/Usage/Efficiency variance is further broken down into DM MIX & DM YIELD Variances
Who is ultimately responsible?
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