What
is Variance?
Variance is difference
between the expected result and actual result. When those variances are
analyzed, then this process is known as variance analyses.
What
is purpose of variance Analyses?
Variance analyses are
performed primarily for two reasons i.e. cost control and performance
evaluation of different manager. Variance analyses are of fundamental
importance in responsibility accounting.
What
are different types of variances?
There are number of
variances which includes material related variances, labor related variances,
overheads related variances, sales related variances.
What
are types of material Variances?
The material variance
includes martial price variance and material usage variance.
What
are types of labor variances?
Labor variance includes labour
rate variances and labor efficiency variance.
What
are types of variable overhead variance?
Variable
overhead variance includes expenditure variance and efficiency variance
