Purchase price variance

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Reference no: EM131691959

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 manager
QUANTITY/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?

Reference no: EM131691959

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