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Price Variance = (Actual Price/Unit - Budgeted Price/Unit) x Actual Quantity of Output = (AP - SP) x AQ
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How to compute after tax salvage value?
Salvage Value - [Tax * (Market Value - Book Value)
What is the difference between negative price variance and volume variance?
Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.
Why would a favorable price variance for material might be the cause of unfavorable quantity variance?
A favorable/unfavorable price variance does not effect your quantity variance. The reason you would see a favorable price variance and an unfavorable quantity variance is because you consumed more materials than your standard allows AND the price you paid for those material was less than your standard price. If you paid more than your standard price, you would have experienced an unfavorable variance in both quantity and price.
How do you solve for price index?
To compute the price index, the cost of the market basket in any period is divided by the cost of the market basket in the base period, and the result is multiplied by 100. Price Index= P3/ Pb x 100
How do you calculate material price variances and what are the possible reasons for such variances?
Following are the causes of material price variance: 1.There could have been recent changes in purchase price of materials. 2.Price variance can be due to substituting raw materials different from the original material specification. 3.Price variance can be attributed to the non availability of cash discounts which was originally anticipated at the time of setting the price standards. 4.Changes in transportation costs and storekeeping costs can also be contributing factors to material price variance.
How to compute residual variance of RIL and Sensex?
Variance is variability and diversity of security from average mean and expected value Variance = standard deviation fo security * co relation (r) devided by standanrd deviation of sensex
How do you compute discrete variables?
You do not compute discrete variables. Some variables are discrete others are not. Simple as that. You do not compute people - you can compute their average height, or mass, or shoe size, etc. But that is computing those characteristics, you are not computing people. In the same way, you can compute the mean, variance, standard error, skewness, kurtosis of discrete variables, or the probability of outcomes, but none of that is computing the discrete variable.You do not compute discrete variables. Some variables are discrete others are not. Simple as that. You do not compute people - you can compute their average height, or mass, or shoe size, etc. But that is computing those characteristics, you are not computing people. In the same way, you can compute the mean, variance, standard error, skewness, kurtosis of discrete variables, or the probability of outcomes, but none of that is computing the discrete variable.You do not compute discrete variables. Some variables are discrete others are not. Simple as that. You do not compute people - you can compute their average height, or mass, or shoe size, etc. But that is computing those characteristics, you are not computing people. In the same way, you can compute the mean, variance, standard error, skewness, kurtosis of discrete variables, or the probability of outcomes, but none of that is computing the discrete variable.You do not compute discrete variables. Some variables are discrete others are not. Simple as that. You do not compute people - you can compute their average height, or mass, or shoe size, etc. But that is computing those characteristics, you are not computing people. In the same way, you can compute the mean, variance, standard error, skewness, kurtosis of discrete variables, or the probability of outcomes, but none of that is computing the discrete variable.
Compute the current price of the bonds if the present yield to maturity is?
Compute the current price of the bond if percent yield to maturity is 7%
How do you compute ratios in airline business?
I've heard of price often being compared with passenger mileage to compute proper ticket price.
Why then should calculate a material price variance?
Material variance should be calculated to ensure that you are setting the right price for your products. When the price varies significantly, you may need to establish a new price for the product.
Is the materials price variance the least significant from a standpoint of cost control?
NO - Fixed Overhead Volume Variance
What is the difference between a sales volume variance and a sales price variance?
Volume is a change in how many products you sell Price is a change in how much you charge for the product
