Page 123 - BA2 Integrated Workbook STUDENT 2018

Chapter 7

Standard costing and variance analysis

Outcome

By the end of this session you should be able to:

 explain why planned standard costs, prices and volumes are useful

 calculate variances for materials, labour, variable overheads, sales prices and
sales volumes

 prepare a statement that reconciles budgeted profit with actual profit calculated
using marginal costing

 explain why variances could have arisen and the inter-relationships between
variances

and answer questions relating to these areas.

The underpinning detail for this Chapter in your Integrated Workbook can

be found in Chapter 7 of your Study Text

117