variance analysis - VARIANCE ANALYSIS Standard Costing is a...

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VARIANCE ANALYSIS
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Standard Costing … is a method of cost control that includes a measure of actual performance and a measure of the difference, or variance , between standard and actual performance
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Standard Costing, Variance Analysis, and the Management Cycle
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The Relevance of Standard Costing in Today's Business Environment Manufacturing companies Increased automation Significant decrease in direct labor cost Corresponding decline in importance of labor-related standard costs and variances Many companies now apply standard costing only to direct materials and manufacturing overhead Service organizations Use standard costing for direct labor and service overhead costs
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Variance Analysis … is the process of computing the differences between standard costs and actual costs and identifying the causes of those differences Managers use Flexible budgets to improve variance analysis Variance analysis to control costs
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The Role of Flexible Budgets in Variance Analysis
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variance analysis - VARIANCE ANALYSIS Standard Costing is a...

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