Direct material variance

Direct material variance

= Direct Material Cost Variance =

Material Cost Variance can be divided into :

- Price Variance

- Usage Variance

Usage Variance can be further sub-divided into :

- Mix Variance

- Yield Variance


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  • Direct material total variance — In variance analysis (accounting) direct material total variance is the difference between the actual cost of actual number of units produced and its budgeted cost in terms of material. Direct material total variance can be divided into two… …   Wikipedia

  • Direct material price variance — In variance analysis (accounting) direct material price variance is the difference between the standard cost and the actual cost for the actual quantity of material used or purchased. It is one of the two components (the other is direct material… …   Wikipedia

  • 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

  • Variance (accounting) — In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard amount and the actual amount incurred/sold. Variances can be computed for both costs and revenues.The concept of variance is… …   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

  • 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… …   Accounting dictionary

  • 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 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

  • variance — Civil and criminal practice. A discrepancy or disagreement between two instruments or two pleading allegations in the same cause, which should by law be entirely consonant. Thus, if the evidence adduced by the plaintiff does not agree with the… …   Black's law dictionary

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