Page 40 - UNISA Manac Cost Course Slides Part 1

TEST 3 - COSTING

Costing variances

• The volume variance for overhead/labour should be

included ABOVE the gross profit line, as part of the

production cost for the period under review.

• The volume and expenditure variances are only

calculated when doing a Statement of Profit or Loss

and Other Comprehensive Income on the absorption

costing method.

• The expenditure variance is covered in tandem

with the volume variance as they are often

confused with one another.

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