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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.
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Alternative performance measures There are various measures that can be used to measure performance of a decentralized company. The major ones are: • Return on Investmen
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The least-cost method The process is described as follows: Assign as much as possible to the variable with the least unit cost in the whole tableau. (Ties are broken randomly).
What is Scientific standards and Variance analysis The important steps of standard costing as described above may be summarized as follows; 1) Scientific standards: stand
discuss the applicability of an operating cycle in vegetable growing in a low developed country like Uganda- Africa
THE BREAK EVEN POINT
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