Tag Archives | Cost Variances

How to Calculate Cost Variances [with Treatment and Methods]

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 [...]

By |2018-05-16T07:31:19+00:00May 16, 2018|Variance Analysis|Comments Off on How to Calculate Cost Variances [with Treatment and Methods]

Cost Variances: Causes and Reasons | Cost Accounting

In this article we will discuss about:- 1. Causes of Cost Variance 2. Reasons for Cost Variances 3. Interdependence between Variances. Causes of Cost Variance: The causes of variances can be categorized as follows: (a) Implementation deviation results from a human or mechanical failure to achieve an attainable income. (b) Prediction deviation results from errors in specifying the parameter values [...]

By |2016-12-12T08:06:15+00:00December 12, 2016|Cost Variances|Comments Off on Cost Variances: Causes and Reasons | Cost Accounting
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