08-27-2009, 08:42 PM
<font color="blue"><b>Variance</b></font id="blue">
The difference between the standard prices & quantities and actual prices & quantities.
<font color="blue"><b>Management by Exception</b></font id="blue">
A system of management in which standards are set for various operating activities, with actual results then compared against these standards and any differences that are deemed significant brought to the attention of management as exceptions.
<b><font color="blue">Materials price variance</font id="blue"></b>
A measure of the difference between the actual unit price paid for and item and the standard price that should have been paid, multiplied by the quantity purchased.
<font color="blue"><b>Materials quantity variance</b></font id="blue">
A measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials.
<font color="blue"><b>Variable overhead efficiency variance</b></font id="blue">
A measure of the difference between the actual activity ( direct labor hours, machine-hours or some other base) of a period and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
<font color="blue"><b>Variable overhead spending variance</b></font id="blue">
A measure of the difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred, based of the actual activity of the period.
<font color="blue"><b>Labor rate variance</b></font id="blue">
A measure of the difference between the actual hourly labor rate and the standard rate allowed, multiplied by the number of hors worked during the period.
<font color="blue"><b>Labor efficiency variance</b></font id="blue">
A measure of the difference between the actual hours required to complete a task and the standard hours allowed, multiplied by the standard hourly rate.
The difference between the standard prices & quantities and actual prices & quantities.
<font color="blue"><b>Management by Exception</b></font id="blue">
A system of management in which standards are set for various operating activities, with actual results then compared against these standards and any differences that are deemed significant brought to the attention of management as exceptions.
<b><font color="blue">Materials price variance</font id="blue"></b>
A measure of the difference between the actual unit price paid for and item and the standard price that should have been paid, multiplied by the quantity purchased.
<font color="blue"><b>Materials quantity variance</b></font id="blue">
A measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials.
<font color="blue"><b>Variable overhead efficiency variance</b></font id="blue">
A measure of the difference between the actual activity ( direct labor hours, machine-hours or some other base) of a period and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
<font color="blue"><b>Variable overhead spending variance</b></font id="blue">
A measure of the difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred, based of the actual activity of the period.
<font color="blue"><b>Labor rate variance</b></font id="blue">
A measure of the difference between the actual hourly labor rate and the standard rate allowed, multiplied by the number of hors worked during the period.
<font color="blue"><b>Labor efficiency variance</b></font id="blue">
A measure of the difference between the actual hours required to complete a task and the standard hours allowed, multiplied by the standard hourly rate.