Essential Management Accounting – Chapter 16: Standard costing and variance analysis – 2016-17

This chapter covers:
•Standard costs
•Cost variances
•Direct materials: price and usage variances
•Direct labour: rate and efficiency variances
•Variable production overheads: expenditure and efficiency variances
•Fixed production overhead cost variances: absorption costing
•Sales variances: sales price and sales volume variances
•Interrelationships between variances
•Reconciling budgeted and actual profit: standard absorption costing
•Standard marginal costing
•Deciding whether to investigate a variance
•Calculating actual costs or standard costs from variances