Page 14 - MAC4861_2 Costing class slides part 2

STANDARD COSTING
Variances - General Recap

• The methods for the calculation of the various material,

labour and variable overhead variances including the

principle of flexible budgeting as well as the meaning of

the variances.

• The differences in the calculation methods for sales and

fixed overhead variances under absorption vs. variable

costing systems.

• The further division of the sales quantity variance into a

market size and a market share variance.

• The calculation of variances using an ex post variance

analysis approach (distinguishing between planning and

operational variances).

• Market size and share variances and reports thereon will

be covered in ITC exam

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