Each and everything you need to know about Sales Variance. Sales Value Variance: It is the difference between budgeted sales revenue and actual sales revenue. In other words, this variance represents the difference between expected sales revenue and actual sales revenue achieved. It is also called Total Sales Variance. Sales Price Variance: It is the difference between actual and expected [...]
Variance refers to the difference between planned and actual performance. Planned performance may be quantified in budget or actual performance. Planned performance may be quantified in budget or expressed as standard costs or any other statement. Thus, variance is a general term and not specific to the standard costing system. Variance Accounting: It is defined as 'A technique whereby the [...]
The following article will guide you about how to calculate cost variances in accounts. Treatment of Cost Variances in Accounts: For firms that use standard costing system, accounting for variances in internal reporting at the end of the period is an important decision. The decision influences both inventory valuation and income measurement. Divergent views exist among accountants as to the [...]