Variance analysis

4 Importance of Standard Costing with detailed explanation

Standard costing is a branch of cost accounting or managerial accounting that is mostly used in a manufacturing concern that involves direct material, direct labor, and overheads. Standard rates are used while assigning the cost of direct labor, direct material, and overhead costs; the finished goods and cost of goods sold will contain standard rates …

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What is Variance Analysis? Definition, Explanation, 4 Types of Variances

Definition: Variance analysis is an important aspect of cost and management accounting systems. It compares the budgeted/standard costs or revenue to the actual costs incurred or revenue earned. Variance analysis is more on cost or management accounting rather than financial accounting. It is generally served management for their performance management, especially in cost management, labor …

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