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Material usage variance
Difference among standard quantity of material and actual quantity used is the material usage variance. This variance arises due to:
Economic use of materials
Use of substitutes
Higher/less wastage of materials
Changes in designs or specification of product
Markov Chains: Markov Chains are named after the Russian statistician A.A Markov who developed probabilistic models that are often applicable to decision making problems in bu
reasons for favourable or adverse variances i.e. prise usage, mix, yeild
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Recommend whether marginal or absorption costing should be use for internal monthly reporting
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THE BREAK EVEN POINT
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