direct materials price variance
- direct materials price variance
In a standard costing system, a variance arising as part of the direct materials total cost variance. There are two alternative points at which the materials price variance may be established: when the material is purchased or when it is issued to production. When established on issue to production, the variance compares the actual price paid for direct material used in a product with the standard purchase price of the material consumed. When established on purchase, it compares the actual price paid for the direct material purchased with the standard price allowed for the purchased material. The resultant adverse or favourable variance is the amount by which the budgeted profit is affected by differences in direct material prices. The formulae for this variance are:
(standard price per unit of material – actual price per unit of material) × actual units consumed or purchased,
or alternatively:
(standard price per unit of material × actual units consumed or purchased) – actual material cost.
Accounting dictionary.
2014.
Look at other dictionaries:
direct materials yield variance — direct materials quantity variance In standard costing systems, part of the direct materials usage variance; it is the difference between the total standard quantity of material allowed for a process in standard proportions (see standard mix) and … Accounting dictionary
direct materials usage variance — In a standard costing system, a variance arising as part of the direct materials total cost variance. It compares the actual quantity of material used to carry out production with the standard quantity allowed, and values the difference at the… … Accounting dictionary
direct materials mix variance — In standard costing systems, part of the direct materials usage variance; it is the difference between the total material used in standard proportions (see standard mix) and the material used in actual proportions, valued at standard prices (see… … Accounting dictionary
Отклонение прямых материальных затрат по цене (DIRECT MATERIALS PRICE VARIANCE) — Разность между фактической и нормативной ценой единицы закупленных материалов, умноженное на фактически приобретенное (или использованное в производстве) количество единиц материала … Словарь терминов по управленческому учету
direct materials total cost variance — A combination of the direct materials price variance and the direct materials usage variance; it compares the actual cost and the standard cost of the direct material consumed in carrying out the actual production. The formula for this variance… … Accounting dictionary
Direct material usage variance — In variance analysis (accounting) direct material usage (efficiency, quantity) variance is the difference between the standard quantity of materials that should have been used for the number of units actually produced, and the actual quantity of… … Wikipedia
Direct materials cost — is the cost of direct materials which can be easily identified with the unit of production. For example, the cost of glass is a direct materials cost in light bulb manufacturing[1]. The manufacture of products or goods required material as the… … Wikipedia
materials variances — See: direct materials price variance, direct materials total cost variance, direct materials usage variance … Accounting dictionary
price variances — See: direct materials price variance, sales margin price variance … Accounting dictionary
отклонение прямых материальных затрат по цене — Разность между фактической и нормативной ценой единицы закупленных материалов, умноженное на фактически приобретенное (или использованное в производстве) количество единиц материала. [http://www.lexikon.ru/dict/uprav/index.html] Тематики… … Справочник технического переводчика
