Standard costing and variance analysis

Standard costing and variance analysis

1. Standard costing

   • Types of standard

2. Variance analysis

3. Calculating variances

4. Flexing the budget

5. Materials cost variances

   • Price variance
   • Usage variances

6. Labour variances

   • Labour rate variance
   • Labour efficiency variance

7. Variable overhead variances

   • Variable overhead expenditure variance
   • Variable efficiency variance

8. Fixed overhead variance

9. Sales variances

   • Sales price variance
   • Sales volume variance

10. Summary of variance formulae

11. Reconciling budgeted profit and actual profit

12. Investigating variances

    • Management by exception
    • Feedback provisions

13. Advantages and disadvantages of variance analysis