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Qué (quién) es material price variance - definición
Direct material variance
Direct material price variance
USED FOR CALCULATING VARIANCE IN MATERIAL COST DUE TO HIGHER OR LOWER PRICE PAID
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 purchased. It is one of the two components (the other is direct material usage variance) of direct material total variance.
Price variance
OR PURCHASE PRICE VARIANCE, IN ACCOUNTING
Price Variance
Price variance (Vmp) is a term used in cost accounting which denotes the difference between the expected cost of an item (standard cost) and the actual cost at the time of purchase. The price of an item is often affected by the quantity of items ordered, and this is taken into consideration.
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 components:
Wikipedia
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 components:
- the direct material price variance,
- the direct material usage variance.
