What is Standard Costing and How Does It Work
Standard Cost Accounting (or Standard Costing) is a form of cost accounting that uses predetermined costs for materials, labor, and overhead to estimate the costs of goods or services. Standard costing is typically used in manufacturing to determine the cost of products based on standard rates for materials, labor, and overhead. Companies use standard costing […]
Creating a Variance Analysis Model – Part 2
This article builds upon the theory discussed in Creating a Variance Analysis Model – Part 1. Be sure to read this article before looking at the more practical examples below. Building a Variance Analysis Model in Excel Let’s create an Excel model to perform our variance analysis. For the exercise, we will assume a simple scenario […]
Creating a Variance Analysis Model – Part 1
Today we will take a more detailed look at Variance Analysis. In this article, we will deal with the theory, and in next week’s article, we will build an Excel model to look more practically at the subject. Variance Analysis Variance analysis looks at the differences between planned and actual numbers. This method is used […]