责任中心和财务管理英文版

Decomposing Variances
❖ What is the direct material efficiency or usage variance?
❖ It is actual quantity used at target or standard price less the flexible budget allowance at the planned or target price.
Decomposing Variances
❖ Support costs can reflect flexible or capacity-related costs.
❖ The quantity of capacity-related costs may not change from period to period, but the spending on them may fluctuate.
❖ Usage Variance = (AQ – SQ) ×SP ❖ What is the direct material price variance? ❖ Price Variance = (AP – SP) ×AQ
Decomposing Variances
❖ What is the efficiency or usage variance for direct labor costs?
Decomposing Variances
❖ What are planning variances? ❖ They reflect the effect of the volume change
between the master budget and actual activity level achieved. ❖ What are flexible budget variances? ❖ They show the differences between the flexible budget and the actual results.
❖ Efficiency Variance = (AH – SH) ×SR ❖ What is the rate variance for direct labor
costs? ❖ Rate Variance = (AR – SR) ×AH ❖ Support costs can also be analyzed in detail.
Decomposing Variances
Master Budget – Flexible Budget = Planning Variance
Flexible Budget – Actual Results = Flexible Budget Variance
Planning variances and flexible budget variances are called secondary variances.
Learning Objective 1 Describe the form and
nature of variance analysis and apply its
basic insights.
Variances
❖ What are variances? ❖ Variances are differences between actual
Decomposing Variances
❖ What are flexible budgets? ❖ Flexible budgets recast cost targets in the
planned or master budget to reflect the actual level of production. ❖ This allows comparisons of actual results to targets based on the achieved level of production.
❖ What are flexible support costs? ❖ They reflect operations that are proportional
❖ Variances are “favorable” if the actual costs are less than estimated costs.
❖ Variances are “unfavorable” if the actual costs exceeds estimated costs.
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Master Actual Budget Costs Difference
Direct Material – Welcome Package
25,000 29,700 4,700
Direct Labor – Sales Staff – Technical Staff
12,500 14,850 2,350
10,000 10,890
890
Support Cost – Data Processing – System Activation
3,000 3,960
wenku.baidu.com
960
45,000 42,900 – 2,100
Total Customer-Related Costs 95,500 102,300 6,800
and estimated costs. ❖ Variance analysis is a necessary step to
understand why a difference occurred.
First-Level Variances
❖ The first-level variance for a cost item is the difference between the actual and master budget costs.