Direct Material variance Direct Labor Variance Cost Accounting CPA Exam BAR CMA Exam
Free
26 minutes
English

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Description

This presentation delves into the world of direct labor and material variance, two essential concepts in cost accounting. It starts by introducing standard costs, which are predetermined quantities and prices of inputs required to produce a unit of output. The concept is explained using everyday examples, such as baking cupcakes or making pizzas, where following a recipe ensures consistency in the final product. However, the real-world application of this principle is more complex, as companies strive for efficiency and quality while managing their resources effectively. The presentation then explores direct labor variance, which compares the actual time spent on an activity with the standard time specified. This concept helps organizations identify areas where they can improve productivity and reduce costs. Material variance is also discussed, focusing on the difference between actual usage and standard quantities of materials used in production. The content assumes some prior knowledge of cost accounting but aims to provide a comprehensive understanding of these topics for both students and professionals. learn more

Professions

Supply Chain Specialists Supply Chain Manager Production Manager Operations Managers Operations Manager Manager Management Accountants Industrial Engineer Financial Analysts Financial Analyst Economist Cost Accountants Cost Accountant Controller Business Manager Auditor Accountant

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