Get premium membership and access questions with answers, video lessons as well as revision papers.
Variance analysis can simply be defined as the process of analyzing the difference between the standard cost and the actual cost (this difference is called the variance) into its constituent parts. The causes of variances are determined and management can take appropriate measures.
The process by which the total difference between standard and actual cost is sub-divided into various parts is known as variance analysis. It may be also defined as, “The analysis of variances arising in a standard costing system into their constituent parts.” A variance is the difference between the standard cost and actual cost. In variance analysis, the variance is further subdivided into material variance, labour cost variance and overhead variance. The variances may rise due to various reasons. The variances may be adverse or favourable. When actual cost is greater than standard cost, the variance is known as adverse or unfavourable. On the other hand, when actual cost is less than standard cost then the variance is favourable. These variances may be also known as minus (adverse) or plus (favourable) variances.
Wilfykil answered the question on April 17, 2019 at 08:39
- List and explain the methods Used to Allocate Joint Costs(Solved)
List and explain the methods Used to Allocate Joint Costs
Date posted: April 17, 2019. Answers (1)
- Which is the accounting Treatment of Spoilage Costs?(Solved)
Which is the accounting Treatment of Spoilage Costs?
Date posted: April 17, 2019. Answers (1)
- What are the features of contract accounting?(Solved)
What are the features of contract accounting?
Date posted: April 17, 2019. Answers (1)
- Give the factors considered on each overhead Absorption Method(Solved)
Give the factors considered on each overhead Absorption Method
Date posted: April 17, 2019. Answers (1)
- Simon worked 360 hours during the month of June 2012 and he was paid at the rate of Ksh 200 per hour. During the month...(Solved)
Simon worked 360 hours during the month of June 2012 and he was paid at the rate of Ksh 200 per hour. During the month he completed three jobs. The following additional information was provided.
Calculate the labour cost chargeable to these three jobs on the assumption that these jobs were completed only by Simon.
Date posted: April 17, 2019. Answers (1)
- From the following information, prepare a payroll for the month of May 2014.(Solved)
From the following information, prepare a payroll for the month of May 2014.
Additional Information
1. Normal working hours per month are 180. Overtime payable for extra hours at the rate of 50% above normal pay rate.
2. P.A.Y.E to be deducted at the rate of 20% of gross wage.
3. N.S.S.F to be deducted Ksh200 for each employee.
4. N.H.I.F to be deducted Ksh400 for each employee.
Date posted: April 17, 2019. Answers (1)
- The following information was extracted from the books of Danex Holdings regarding its stocks:(Solved)
The following information was extracted from the books of Danex Holdings regarding its stocks:
Determine the following stock levels for Danex Holdings:
i. Re-order level
ii. Maximum stock level
iii. Minimum stock level
Date posted: April 17, 2019. Answers (1)
- What considerations should be given to Stock Level and its control?(Solved)
What considerations should be given to Stock Level and its control?
Date posted: April 17, 2019. Answers (1)
- Outline the factors Affecting Stock Levels(Solved)
Outline the factors Affecting Stock Levels
Date posted: April 17, 2019. Answers (1)
- A company has an annual demand for material “p” of 25,000 tons per annum. The cost price per ton is Ksh2, 000 and stock holding...(Solved)
A company has an annual demand for material “p” of 25,000 tons per annum. The cost price per ton is Ksh2, 000 and stock holding is 25% per annum of the stock value. Delivery cost per batch is Ksh400.
Calculate the Economic Order Quantity(E.O.Q)
Date posted: April 17, 2019. Answers (1)
- Outline the assumptions / limitation of Economic Order Quality(Solved)
Outline the assumptions / limitation of Economic Order Quality
Date posted: April 17, 2019. Answers (1)
- Give objectives of Stock Control.(Solved)
Give objectives of Stock Control.
Date posted: April 17, 2019. Answers (1)
- Explain Average Weighted Cost Average as a method of Valuing Material Issues(Solved)
Explain Average Weighted Cost Average as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Explain Last In, First Out (LIFO) as a method of Valuing Material Issues(Solved)
Explain Last In, First Out (LIFO) as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Explain First In First Out (FIFO) as a method of Valuing Material Issues(Solved)
Explain First In First Out (FIFO) as a method of Valuing Material Issues
Date posted: April 17, 2019. Answers (1)
- Define the term Perpetual inventory(Solved)
Define the term Perpetual inventory
Date posted: April 17, 2019. Answers (1)
- Explain Just-in-time (JIT) systems(Solved)
Explain Just-in-time (JIT) systems
Date posted: April 17, 2019. Answers (1)
- Discuss on the systems of Stock Taking(Solved)
Discuss on the systems of Stock Taking
Date posted: April 17, 2019. Answers (1)
- Define material Coding and its' purposes(Solved)
Define material Coding and its' purposes
Date posted: April 17, 2019. Answers (1)
- Name and explain types of Stores(Solved)
Name and explain types of Stores
Date posted: April 17, 2019. Answers (1)