Direct Materials Variances
This video gives examples from Steve's Sausages, using a diagrammatic method to calculate direct materials variance. The diagram integrates standard and actual measures of price and quantity. By following this method, you will be able to break down variance into those factors associated with quantity changes and price changes.
Source: Tony Bell
This work is licensed under a Creative Commons Attribution 3.0 License.
Last modified: Tuesday, September 14, 2021, 4:13 PM