Standard Costing and Variance Analysis Flashcards
1
Q
What is standard costing
A
Sets the planned cost for materials, labour and overheads in a period of time.
2
Q
Definition of overheads
A
The expected quantity of output within a time period divided into the expected
3
Q
Definition of Variance
A
The difference between the standard cost/expected revenues and the actual revenue
4
Q
Materials Variance
A
the difference between the standard cost of material and the actual cost of material for the actual production.
5
Q
Labour Variance
A
The difference between the standard cost of labour and the actual cost of labour for the actual production
6
Q
Sales Variance
A
The difference between the standard sales revenue and the actual sales revenue for the product or service
