{"id":3860,"date":"2020-03-08T04:31:17","date_gmt":"2020-03-08T04:31:17","guid":{"rendered":"https:\/\/commerceiets.com\/?p=3860"},"modified":"2020-03-08T04:31:17","modified_gmt":"2020-03-08T04:31:17","slug":"variance-analysis","status":"publish","type":"post","link":"https:\/\/commerceiets.com\/variance-analysis\/","title":{"rendered":"VARIANCE ANALYSIS"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#VARIANCE_ANALYSIS\" title=\"VARIANCE ANALYSIS\">VARIANCE ANALYSIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#IMPORTANCE_OF_VARIANCE_ANALYSIS\" title=\"IMPORTANCE OF VARIANCE ANALYSIS\">IMPORTANCE OF VARIANCE ANALYSIS<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#TYPES_OF_VARIANCES\" title=\"TYPES OF VARIANCES\">TYPES OF VARIANCES<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#1_Material_Price_Standards\" title=\"1. Material Price Standards:\">1. Material Price Standards:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#2_Material_Quantity_Standards\" title=\"2. Material Quantity Standards:\">2. Material Quantity Standards:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Material_Cost_Variance\" title=\"Material Cost Variance\">Material Cost Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Material_Price_Variance\" title=\"\n\n\n\nMaterial Price Variance\">\n\n\n\nMaterial Price Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Material_Usage_Variance\" title=\"Material Usage Variance\">Material Usage Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Material_Mix_Variance\" title=\"Material Mix Variance\">Material Mix Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Material_Yield_Variance\" title=\"Material Yield Variance\">Material Yield Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Efficiency_Standard\" title=\"Labour Efficiency Standard:\">Labour Efficiency Standard:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Cost_Variance\" title=\"Labour Cost Variance\">Labour Cost Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Rate_Variance\" title=\"Labour Rate Variance\">Labour Rate Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Efficiency_Variance\" title=\"Labour Efficiency Variance\">Labour Efficiency Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Mix_Variance\" title=\"Labour Mix Variance\">Labour Mix Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Labour_Yield_Variance\" title=\"Labour Yield Variance\">Labour Yield Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Idle_Time_Variance\" title=\"Idle Time Variance\">Idle Time Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Net_Efficiency_Variance\" title=\"Net Efficiency Variance\">Net Efficiency Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#_Variable_Overhead_Cost_Variance\" title=\"&nbsp;Variable Overhead Cost Variance\">&nbsp;Variable Overhead Cost Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Variable_Overhead_Expenditure_Variance\" title=\"Variable Overhead Expenditure Variance\">Variable Overhead Expenditure Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Variable_Overhead_Efficiency_Variance\" title=\"Variable Overhead Efficiency Variance\">Variable Overhead Efficiency Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Fixed_Overhead_Cost_Variance\" title=\"Fixed Overhead Cost Variance\">Fixed Overhead Cost Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Fixed_Overhead_Expenditure_Variance\" title=\"Fixed Overhead Expenditure Variance\">Fixed Overhead Expenditure Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Fixed_Overhead_Efficiency_Variance\" title=\"Fixed Overhead Efficiency Variance\">Fixed Overhead Efficiency Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Fixed_Overhead_Capacity_Variance\" title=\"Fixed Overhead Capacity Variance\">Fixed Overhead Capacity Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Revised_Fixed_Overhead_Capacity_Variance\" title=\"Revised Fixed Overhead Capacity Variance\">Revised Fixed Overhead Capacity Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Fixed_Overhead_Calendar_Variance\" title=\"Fixed Overhead Calendar Variance\">Fixed Overhead Calendar Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Variances_Based_on_Profit\" title=\"Sales Variances Based on Profit:\">Sales Variances Based on Profit:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Total_Sales_Margin_Variance\" title=\"Total Sales Margin Variance\">Total Sales Margin Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Price_Variance\" title=\"Sales Price Variance\">Sales Price Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Volume_Variance\" title=\"Sales Volume Variance\">Sales Volume Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Mix_Variance\" title=\"Sales Mix Variance\">Sales Mix Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Quantity_Variance\" title=\"Sales Quantity Variance\">Sales Quantity Variance<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/commerceiets.com\/variance-analysis\/#Sales_Variances_Based_on_Turnover\" title=\"Sales Variances Based on Turnover\">Sales Variances Based on Turnover<\/a><\/li><\/ul><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"VARIANCE_ANALYSIS\"><\/span><strong>VARIANCE ANALYSIS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Variance Analysis is the analysis of variances arising in a <a href=\"https:\/\/commerceiets.com\/standard-costing\/\" target=\"_blank\" rel=\"noreferrer noopener\" aria-label=\"standard costing (opens in a new tab)\">standard costing<\/a> system into their constituent parts. It is the analysis and comparison of the factors which have caused the differences between predetermined standards and actual results, with a view to eliminating inefficiencies.<\/p>\n\n\n\n<p><strong>ACCORDING\nTO I.C.M.A.<\/strong><\/p>\n\n\n\n<p>\u201cVariance analysis\nis the resolution into constituent parts and explanation of variances\u201d.<\/p>\n\n\n\n<p><strong>ACCORDING\nTO S.P.GUPTA<\/strong><\/p>\n\n\n\n<p>\u201cVariance analysis\nis the measurement of variances, location of their root causes, measuring their\neffect and their disposition\u201d.<\/p>\n\n\n\n<p>Thus, variance analysis can be\ndefined as the segregation of total cost variances into different elements in\nsuch a way as to indicate or locate clearly the cause for such variances and\npersons held responsible for them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"345\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE-1024x345.png\" alt=\"FAVORABLE UN FAVORABLE.png\" class=\"wp-image-3864\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE-1024x345.png 1024w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE-300x101.png 300w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE-768x259.png 768w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE-1536x518.png 1536w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/FAVORABLE-UN-FAVORABLE.png 1725w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"IMPORTANCE_OF_VARIANCE_ANALYSIS\"><\/span><strong>IMPORTANCE OF VARIANCE ANALYSIS<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The following points depicts the importance of variance analysis for the management:<\/p>\n\n\n\n<p><strong>Budget vs. Actual Costs<\/strong><\/p>\n\n\n\n<p>Variance analysis is important to\nassist with managing budgets by controlling budgeted versus actual costs. In\nprogram and project management, for example, financial data are generally\nassessed at key intervals or milestones. For instance, a monthly closing report\nmight provide quantitative data about expenses, revenue and remaining inventory\nlevels. Variances between planned and actual costs might lead to adjusting\nbusiness goals, objectives or strategies.<\/p>\n\n\n\n<p><strong>The Materiality Threshold<\/strong><\/p>\n\n\n\n<p>A materiality threshold is the\nlevel of statistical variance deemed meaningful, or worth noting. This will\nvary from company to company. For example, a sales target variance of Rs.100,000\nwill be more material to a small business retailer than to a national retailer\naccustomed to generating billions in annual revenues. <\/p>\n\n\n\n<p><strong>Relationships Between Variables<\/strong><\/p>\n\n\n\n<p>Relationships between pairs of\nvariables might also be identified when performing variance analysis. Positive\nand negative correlations are important in business planning.<\/p>\n\n\n\n<p>As an example, variance analysis\nmight reveal that when sales for widget A rise there is a correlated rise in\nthe sales for widget B. Improved safety features for one product might result\nin sales increases. This information might be used to transfer this success to\nother similar products.<\/p>\n\n\n\n<p><strong>Business Trend Forecasting<\/strong><\/p>\n\n\n\n<p>An important type of prediction\nis business forecasting. It uses patterns of past business data to construct a\ntheory about future performance. Variance data are placed into context that\nallows an analyst to identify factors such as holidays or seasonal changes as\nthe root cause of positive or negative variances.<\/p>\n\n\n\n<p>For example, the monthly pattern\nof sales of television sets over five years might identify a positive sales\ntrend leading up to the beginning of the school year. As a result, forecasts\nfor television sales over the next 12 months might include increasing inventory\nby a certain percentage \u2013 based on historical sales patterns \u2013 in the weeks\nbefore the start of local universities&#8217; fall term.<\/p>\n\n\n\n<h2 class=\"has-text-align-center wp-block-heading\"><span class=\"ez-toc-section\" id=\"TYPES_OF_VARIANCES\"><\/span><strong>TYPES OF VARIANCES<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"583\" height=\"352\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-27.png\" alt=\"\" class=\"wp-image-3865\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-27.png 583w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-27-300x181.png 300w\" sizes=\"(max-width: 583px) 100vw, 583px\" \/><\/figure>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong><em>MATERIAL<\/em><\/strong><strong> <em>VARIANCES<\/em><\/strong><\/p>\n\n\n\n<p>For the purpose of material variance analysis, the\nfollowing two types of standards need be fixed.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Material_Price_Standards\"><\/span>1. Material Price Standards:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Price\nfactor is controlled by external factors. If the price changes during the\nperiod due to inflation, raise in prices of controlled items like cement,\nsteel, etc., there is going to be wide variations.<\/p>\n\n\n\n<p>Material\nprices are fixed keeping in mind the terms of contract of purchases, nature of\nitems and other relevant factors. Some organizations have regular system of\npurchases (rate contract) for the whole period\/year at predetermined price\nirrespective of the prevalent market rates.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Material_Quantity_Standards\"><\/span>2. Material Quantity Standards:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Quantity usage standards are set on the basis of various test runs and guidelines provided by R&amp;D department or Engineering department and specifications on the basis of past experience. The standards should also take into consideration allowances for acceptable level of waste, spoilage, shrinkage, seepage, evaporation, leakage, etc.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"580\" height=\"352\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-28.png\" alt=\"\" class=\"wp-image-3866\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-28.png 580w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-28-300x182.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Material_Cost_Variance\"><\/span><strong>Material Cost Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nmaterial cost variance is also called \u2018material total variance\u2019 is the\ndifference between standard direct material cost of actual production and the\nactual cost of direct material.<\/p>\n\n\n\n<p>(Standard\nunits x Standard price) \u2013 (Actual units x Actual price)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Material_Price_Variance\"><\/span><strong>\n\n\n\nMaterial Price Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nmaterial price variance is the difference between the standard price and the\nactual purchase price for each unit of material multiplied by the actual\nquantity of material purchased. It is preferable to base the price variance on\nthe actual quantity of material purchased and not on the actual quantity used\nin order that price variances can be reported for control purposes.<\/p>\n\n\n\n<p>Actual\nquantity (Standard price per unit \u2013 Actual price per unit)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Material_Usage_Variance\"><\/span><strong>Material Usage Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nmaterial usage variance is the difference between the actual quantity of\nmaterial used and the standard quantity of material that should be used for\nactual production, multiplied by the standard price per unit of material.<\/p>\n\n\n\n<p>Standard\nprice per unit (Standard quantity \u2013 Actual quantity)<\/p>\n\n\n\n<p>Material\nusage variance is further segregated into (a) Material mix variance, and (b)\nMaterial yield variance.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Material_Mix_Variance\"><\/span><strong>Material Mix Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>If\na process uses several different materials which could be combined in a\nstandard proportion, a mix variance can be calculated which shows the effect on\ncost of variances from the standard proportion. There are two recognized ways\nof calculating this mix variance.<\/p>\n\n\n\n<p>Material\nMix Variance= Standard price (Revised standard quantity \u2013 Actual quantity)<\/p>\n\n\n\n<p>Revised\nStandard Quantity= (Total quantity of actual mix\/Total quantity of standard\nmix) x Standard quantity<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Material_Yield_Variance\"><\/span><strong>Material Yield Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Apart\nfrom operator or machine performance, output quantities produced are often\ndifferent to those planned, e.g., this arises in chemical plants where plant\nshould produce a given output over a period for a given input but the actual\noutput differs for a variety of reasons. Material yield variance is the\ndifference between the standard yield of the actual material input and the\nactual yield, both valued at the standard material cost of the product.<\/p>\n\n\n\n<p>Standard\ncost per unit (Standard output for actual mix \u2013 Actual output)<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><em><strong>LABOUR VARIANCES<\/strong><\/em><\/p>\n\n\n\n<p>Normally\nit is taken that labour is a variable cost but at times it becomes fixed cost\nas it is not possible to remove or retrench in case of fall\/stoppage in\nproduction.<\/p>\n\n\n\n<p><strong>Labour Rate Standard and Grades of Labour:<\/strong><\/p>\n\n\n\n<p>This\nis basically dependent on the agreement with the labour unions or rate\nprevalent in the particular area or industry.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Efficiency_Standard\"><\/span>Labour Efficiency Standard:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The labour (quantities) efficiency means the number of hours that the appropriate grade of worker will take to perform the necessary work. It is based on actual performance of worker or group of workers possessing average skill and using average effort while performing manual operations or working on machine under normal conditions. The standard time is fixed keeping in mind the past performance records or work study. This is on the basis that is acceptable to the worker as well as the management.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"661\" height=\"339\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-29.png\" alt=\"\" class=\"wp-image-3867\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-29.png 661w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-29-300x154.png 300w\" sizes=\"(max-width: 661px) 100vw, 661px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Cost_Variance\"><\/span><strong>Labour Cost Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nlabour cost variance is also called\u2019 labour total variance\u2019 is the difference\nbetween the standard direct labour cost and the actual direct labour cost\nincurred for the production achieved.<\/p>\n\n\n\n<p>(Standard\nlabour hours produced x Standard rate per hour) \u2013 (Actual direct labour hours x\nActual rate per hour)<\/p>\n\n\n\n<p>or\nStandard cost for actual output \u2013 Actual cost<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Rate_Variance\"><\/span><strong>Labour Rate Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nlabour rate variance is the difference between the actual direct labour rate\nper hour and the standard direct labour rate per hour, multiplied by the actual\nhours paid, i.e., the rate per hour paid to the direct labour force more or\nless than standard use of higher\/lower grade of skilled workers than planned or\nwage inflation causes this variance.<\/p>\n\n\n\n<p>Actual\ntime (Standard rate \u2013 Actual rate)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Efficiency_Variance\"><\/span><strong>Labour Efficiency Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nlabour efficiency variance is the difference between the actual hours taken to\nproduce the actual output and the standard hours that this output should have\ntaken, multiplied by the standard rate per hour. The possible cause for this\nvariance is due to use of higher\/lower grade of skilled workers than planned or\nthe quality of material used, errors in allocating time to jobs.<\/p>\n\n\n\n<p>Standard\nrate (Standard time for actual output \u2013 Actual time)<\/p>\n\n\n\n<p><strong>\n\n\n\nThe labour efficiency variance can be segregated into the following:<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Mix_Variance\"><\/span><strong>Labour Mix Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nlabour mix variance arises due to change in composition of labour force.<\/p>\n\n\n\n<p>Labour\nMix Variance= Standard rate (Revised standard time \u2013 Actual time)<\/p>\n\n\n\n<p>Revised\nStandard Time= Total actual time\/Total standard time x Standard time<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Labour_Yield_Variance\"><\/span><strong>Labour Yield Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nlabour yield variance arises due to the difference in the standard output\nspecified and the actual output obtained.<\/p>\n\n\n\n<p>Standard\ncost per unit (Standard output for actual time \u2013 Actual output)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Idle_Time_Variance\"><\/span><strong>Idle Time Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nidle time variance represents the difference between hours paid and hours\nworked, i.e., idle hours multiplied by the standard wage rate per hour. This\nvariance may arise due to illness, machine breakdown, holdups on the production\nline because of lack of material.<\/p>\n\n\n\n<p>Idle\nhours x Standard rate<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Net_Efficiency_Variance\"><\/span><strong>Net Efficiency Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This\nvariance is calculated after deducting idle hours from actual hours. The\nefficiency variance less idle time variance is called \u2018net efficiency\nvariance\u2019.<\/p>\n\n\n\n<p>Standard\nrate ( Standard time for actual output \u2013 Actual time worked)<\/p>\n\n\n\n<p>or\nStandard rate (Standard time \u2013 Actual hours paid \u2013 Idle time)<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><em><strong>VARIABLE OVERHEAD VARIANCES<\/strong><\/em><\/p>\n\n\n\n<p>For\nfixation of costs for overheads, a survey of overheads will be necessary and\nwith the data available for budgetary control, the overheads will be charged to\nvarious cost centres\/products etc. on the basis of standard costs. For this,\nafter dividing the overheads into fixed and variable the calculation of\nstandard overhead rate for each cost centre\/product is done.<\/p>\n\n\n\n<p>The number of hours representing the capacity to manufacture is to be reduced by various idle facilities, etc. The choice of method of absorption (direct wage rate or machine hour) will depend upon the circumstances. The main object is to establish a normal overhead rate based on total factory overhead at normal capacity volume.<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"659\" height=\"275\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-32.png\" alt=\"\" class=\"wp-image-3873\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-32.png 659w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-32-300x125.png 300w\" sizes=\"(max-width: 659px) 100vw, 659px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"_Variable_Overhead_Cost_Variance\"><\/span><strong>&nbsp;Variable Overhead Cost Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nvariable overhead cost variance represents the difference between the standard\ncost of variable overhead allowed for actual output and the actual variable\noverhead incurred during the period. The variance represents the under\nabsorption or over absorption of variable overheads.<\/p>\n\n\n\n<p>(Actual\noutput x Standard variable overhead rate p.u.) \u2013 Actual variable overhead cost<\/p>\n\n\n\n<p>or\n(Standard hours for actual output x Standard variable overhead rate per hour) \u2013\nActual variable overhead cost<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Variable_Overhead_Expenditure_Variance\"><\/span><strong>Variable Overhead Expenditure Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>It\nis the difference between the actual variable overhead rate per hour and the\nstandard variable overhead rate per hour multiplied by the actual hours worked.\nThe actual hours worked must be used not the actual hours paid because the\nlatter may include idle time and it is usually assumed that variable overhead\nwill not be recovered in idle time.<\/p>\n\n\n\n<p>(Standard\nvariable overhead rate x Budgeted output) \u2013 Actual variable overheads<\/p>\n\n\n\n<p>or\n(Standard hours for budgeted output x Standard variable overhead rate per hour)\n\u2013 Actual variable overheads<\/p>\n\n\n\n<p>or\nBudgeted variable overheads \u2013 Actual variable overheads<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Variable_Overhead_Efficiency_Variance\"><\/span><strong>Variable Overhead Efficiency Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nvariable overhead efficiency variance is calculated by taking the difference in\nstandard output and actual output multiplied by the standard variable overhead\nrate.<\/p>\n\n\n\n<p>Standard\nvariable overhead rate (Standard output \u2013 Actual output)<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><em><strong>FIXED OVERHEAD VARIANCES<\/strong><\/em><\/p>\n\n\n\n<p>Fixed\noverhead represents all items of expenditure which are more or less remain\nconstant irrespective of the level of output or the number of hours worked.<\/p>\n\n\n\n<p><strong>The fixed overheads variances are classified as follows:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"580\" height=\"380\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-33.png\" alt=\"\" class=\"wp-image-3874\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-33.png 580w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-33-300x197.png 300w\" sizes=\"(max-width: 580px) 100vw, 580px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_Overhead_Cost_Variance\"><\/span><strong>Fixed Overhead Cost Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nfixed overhead cost variance represents the under\/over absorbed fixed\nproduction overhead in the period. This under\/over absorbed overhead may be due\nto differences between actual and budgeted fixed overheads, i.e., expenditure\nvariances, and\/or differences between the actual and budgeted levels of\nactivity i.e., volume variances.<\/p>\n\n\n\n<p>(Actual\noutput x Standard fixed overhead rate per unit) \u2013 Actual fixed overheads<\/p>\n\n\n\n<p>or\n(Standard hours for actual output x Standard fixed overhead rate per hour) \u2013\nActual fixed overheads<\/p>\n\n\n\n<p>or\nRecovered fixed overheads \u2013 Actual fixed overheads<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_Overhead_Expenditure_Variance\"><\/span><strong>Fixed Overhead Expenditure Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This\nvariance is also called \u2018budget variance\u2019, obtained by comparing the total\nfixed overhead cost actually incurred against the budgeted fixed overhead cost.<\/p>\n\n\n\n<p>Budgeted\nfixed overheads \u2013 Actual fixed overheads<\/p>\n\n\n\n<p>Fixed\nOverhead Volume Variance:<\/p>\n\n\n\n<p>The\nvolume variance is computed by taking the difference between overhead absorbed\non actual output and those on budgeted output.<\/p>\n\n\n\n<p>(Actual\noutput x Standard rate) \u2013 Budgeted fixed overheads<\/p>\n\n\n\n<p>or\nStandard rate (Actual output \u2013 Budgeted output)<\/p>\n\n\n\n<p>or\nStandard rate per hour (Standard hours produced \u2013 Budgeted hours)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_Overhead_Efficiency_Variance\"><\/span><strong>Fixed Overhead Efficiency Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nefficiency variance arise due to the difference between budgeted efficiency to\nproduction and the actual efficiency is achieved.<\/p>\n\n\n\n<p>Standard\nrate (Actual output in units \u2013 Standard output in units)<\/p>\n\n\n\n<p>or\nStandard rate per hour (Actual hours worked \u2013 Standard hours for actual output)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_Overhead_Capacity_Variance\"><\/span><strong>Fixed Overhead Capacity Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\ncapacity variance represents the part of volume variance which arise due to\nworking at higher or lower capacity than standard capacity<\/p>\n\n\n\n<p>Standard\nrate (Budgeted quantity \u2013 Standard quantity)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Revised_Fixed_Overhead_Capacity_Variance\"><\/span><strong>Revised Fixed Overhead Capacity Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The revised capacity variance is calculated as\nfollows:<\/p>\n\n\n\n<p>Standard\nfixed overhead rate (Revised budgeted quantity \u2013 Standard quantity)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Fixed_Overhead_Calendar_Variance\"><\/span><strong>Fixed Overhead Calendar Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\ncalendar variance arise due to the volume variance which is due to the\ndifference between the number of working days anticipated in the budget period\nand the actual working days in the period to which the budget is applied.<\/p>\n\n\n\n<p>Standard\nfixed overhead rate (Budgeted quantity \u2013 Revised budgeted quantity)<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><strong><em>SALES VARIANCES<\/em><\/strong><\/p>\n\n\n\n<p>All\nof the variances discussed previously have been concerned with costs; the\neffects on profits due to adverse or favourable variances affecting direct\nmaterials, direct labour or overheads. Some companies calculate cost variances\nonly, but to obtain the full advantages of standard costing, it is required to\ncalculate sales variances.<\/p>\n\n\n\n<p>Sales\nvariances affect a business in terms of changes in revenue: changes which have\nbeen caused either by a variation in sales quantities or in sales prices.<\/p>\n\n\n\n<p><strong>There\nare two distinctly separate systems of calculating sales variances, which show\nthe effect of a change in sales as regards:<\/strong><\/p>\n\n\n\n<p>(i) Sales margin variance (on the basis of profit),<\/p>\n\n\n\n<p>(ii) Sales value variance (on the basis of turnover).<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"646\" height=\"461\" src=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-31.png\" alt=\"\" class=\"wp-image-3869\" srcset=\"https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-31.png 646w, https:\/\/commerceiets.com\/wp-content\/uploads\/2020\/03\/image-31-300x214.png 300w\" sizes=\"(max-width: 646px) 100vw, 646px\" \/><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Variances_Based_on_Profit\"><\/span><strong><em>Sales Variances Based on Profit:<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><strong>The sales variances based on profit are also called\n\u2018sales margin variances\u2019 which indicated the deviation between actual profit\nand standard or budgeted profit:<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Total_Sales_Margin_Variance\"><\/span><strong>Total Sales Margin Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>This\nvariance takes into account the difference between actual profit and standard\nor budgeted profit.<\/p>\n\n\n\n<p>Actual\nprofit \u2013 Budgeted profit<\/p>\n\n\n\n<p>or\n(Actual quantity of sales x Actual profit per unit) \u2013 (Budgeted quantity of\nsales x Budgeted profit p.u.)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Price_Variance\"><\/span><strong>Sales Price Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nprice variance is the difference between standard price of the quantity of\nsales effected and the actual price of those sales.<\/p>\n\n\n\n<p>Actual\nquantity of sales (Actual profit per unit \u2013 Standard profit per unit)<\/p>\n\n\n\n<p>or\n(Actual quantity of sales x Standard price) \u2013 (Actual quantity of sales x\nActual price)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Volume_Variance\"><\/span><strong>Sales Volume Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>It\nrepresents the difference between the actual units sold and the budgeted\nquantity multiplied by either the standard profit per unit or the standard\ncontribution per unit. In absorption costing standard profit per unit is used,\nbut in marginal costing, standard contribution per unit must be used.<\/p>\n\n\n\n<p>Standard\nprofit p.u. (Actual quantity of sales \u2013 Standard quantity of sales)<\/p>\n\n\n\n<p>or\nStandard profit on actual quantity of sales \u2013 Standard profit on standard\nquantity of sales<\/p>\n\n\n\n<p><strong>Sales volume variance can be further segregated into (a)\nSales mix variance and (b) Sales quantity variance as given below:<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Mix_Variance\"><\/span><strong>Sales Mix Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nsales mix variance arises when the company manufactures and sells more than one\ntype of product. This variance will be due to variation of actual mix and\nbudgeted mix of sales.<\/p>\n\n\n\n<p>Standard\nprofit per unit (Actual quantity of sales \u2013 Standard proportion for actual\nsales)<\/p>\n\n\n\n<p>Or\nStandard profit \u2013 Revised standard profit<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Quantity_Variance\"><\/span><strong>Sales Quantity Variance<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>The\nsales quantity is the difference between the budgeted profit on budgeted sales\nand expected profit on actual sales.<\/p>\n\n\n\n<p>Standard\nprofit per unit (Standard proportion for actual sales \u2013 Budgeted quantity of\nsales)<\/p>\n\n\n\n<p>or\nRevised Standard Profit \u2013 Budgeted Profit<\/p>\n\n\n\n<p>or\nBudgeted margin per unit on budgeted mix (Total actual quantity \u2013 Total\nbudgeted quantity)<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Sales_Variances_Based_on_Turnover\"><\/span><strong><em>Sales Variances Based on Turnover<\/em><\/strong><span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p><strong>The sales variances based on turnover are classified as\nfollows:<\/strong><\/p>\n\n\n\n<p><strong>Sales Value Variance<\/strong><\/p>\n\n\n\n<p>(Actual\nquantity x Actual selling price) \u2013 (Standard quantity x Standard selling price)<\/p>\n\n\n\n<p><strong>Sales Price Variance<\/strong><\/p>\n\n\n\n<p>Actual\nquantity (Actual selling price \u2013 Standard selling price)<\/p>\n\n\n\n<p><strong>Sales Volume Variance<\/strong><\/p>\n\n\n\n<p>Standard\nselling price (Actual quantity of sales \u2013 Standard quantity of sales)<\/p>\n\n\n\n<p><strong>Sales Mix Variance<\/strong><\/p>\n\n\n\n<p>Standard\nvalue of actual mix \u2013 Standard value of revised standard mix<\/p>\n\n\n\n<p><strong>Sales Quantity Variance<\/strong><\/p>\n\n\n\n<p>Standard\nselling price per unit (Standard proportion for actual sales quantity \u2013\nBudgeted quantity of sales)<\/p>\n\n\n\n<p>or\nRevised standard sales value \u2013 Budgeted sales value<\/p>\n\n\n\n<p class=\"has-background has-text-align-center has-larger-font-size has-green-background-color\"><em><strong>PROFIT VARIANCES<\/strong><\/em><\/p>\n\n\n\n<p><strong>The profit variances are classified as follows:<\/strong><\/p>\n\n\n\n<p><strong>Profit\nValue Variance:<\/strong><\/p>\n\n\n\n<p>Budgeted\nprofit \u2013 Actual profit<\/p>\n\n\n\n<p><strong>Profit Price Variance:<\/strong><\/p>\n\n\n\n<p>Actual\nquantity (Standard rate of profit \u2013 Actual rate of profit)<\/p>\n\n\n\n<p><strong>Profit Volume Variance:<\/strong><\/p>\n\n\n\n<p>Standard\nrate of profit (Budgeted quantity \u2013 Actual quantity)<\/p>\n\n\n\n<p><strong>Profit Mix Variance:<\/strong><\/p>\n\n\n\n<p>Revised\nstandard profit \u2013 Standard profit<\/p>\n\n\n\n<p><strong>Profit Quantity Variance:<\/strong><\/p>\n\n\n\n<p>Budgeted profit \u2013 Revised standard profit.<\/p>\n\n\n\n<p><strong>JOIN THE CHANNEL ON TELEGRAM<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/t.me\/commerceiets\" target=\"_blank\">https:\/\/t.me\/commerceiets<\/a><\/p>\n\n\n\n<p><strong>CONNECT ON LINKEDIN<\/strong><\/p>\n\n\n\n<p><a href=\"https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/\" target=\"_blank\" rel=\"noopener\">https:\/\/www.linkedin.com\/in\/kajal-mahajan-7549b2197\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>VARIANCE ANALYSIS Variance Analysis is the analysis of variances arising in a standard costing system into their constituent parts. It is the analysis and comparison of the factors which have caused the differences between predetermined standards and actual results, with a view to eliminating inefficiencies. ACCORDING TO I.C.M.A. \u201cVariance analysis is the resolution into constituent&#8230;<\/p>\n<p class=\"more-link-wrap\"><a href=\"https:\/\/commerceiets.com\/variance-analysis\/\" class=\"more-link\">Read More<span class=\"screen-reader-text\"> &ldquo;VARIANCE ANALYSIS&rdquo;<\/span> &raquo;<\/a><\/p>\n","protected":false},"author":2,"featured_media":3862,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[187],"tags":[],"_links":{"self":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3860"}],"collection":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/comments?post=3860"}],"version-history":[{"count":0,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/posts\/3860\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media\/3862"}],"wp:attachment":[{"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/media?parent=3860"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/categories?post=3860"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/commerceiets.com\/wp-json\/wp\/v2\/tags?post=3860"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}