Define materials cost variance, Managerial Accounting

Assignment Help:

Define Materials cost variance

Material cost variance (MCV) is the difference between the standard cost of material specified and the actual cost of materials used." It is the total variance caused by the variations in prices of materials, usage or mix, yield and other causes.

If the standard cost is more than the actual cost the variance will be favorable and on the other hand if the actual cost is more than the standard cost the variance will be unfavorable or adverse.

Related Discussions:- Define materials cost variance

Cost behavior-cost drivers , Cost Behavior A firm's cost position res...

Cost Behavior A firm's cost position results from the cost behavior of its value activities. The cost behavior is based on a number of structural factors which influence cost

Tools of management accounting, Explain the tools of management accounting

Explain the tools of management accounting

Lease accounting, question:lease accounting implicit rate unknown,20%increm...

question:lease accounting implicit rate unknown,20%incremental rate leaseterm 4 years,find implicit rate using trial and error method.i know nothing about trial and error method in

Concentration banking, When the customers of the company are spread over br...

When the customers of the company are spread over broad geographical areas then in place of a particular collection centre the company opens collection centres at the regional stag

State the price determination under the market condition, State the price d...

State the price determination under the market condition The price determination under the following market condition is as follows: 1) Pure competition: in this situation

Application of transportation model, Application of Transportation Model ...

Application of Transportation Model In the direct logic, the transportation model looks for the determination of a transportation plan of a particular commodity from a number o

Treasury risk management, A few of the main focus areas of treasury operati...

A few of the main focus areas of treasury operations are as follows: 1) Cash Flow-Receipts and Disbursements: Accelerating the collection of cash receipts and mobilization or

Mgt acc., companyXYZusesthe job oder costing system.

companyXYZusesthe job oder costing system.

Explain the stages of the suggestion system, Stages of the suggestion syste...

Stages of the suggestion system 1) Encouragement : in the first stage management should make every effort to help the workers provide suggestion no matter how primitive for th

Strategic plan, How to write introduction on strategy plan

How to write introduction on strategy plan

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages