管理会计 (72)管理会计.pdf

Material cost variance 1 Cost variance • A cost variance is a difference between planned/budgeted/standard cost and actual cost incurred. • An adverse variance is one causes actual profits to be less than expected. (A) • A favourable variance is one that causes actual profits to be better than expected. (F) 2 Variance analysis • Variance analysis is the process by which the total difference between stan