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A commonly used method is to determine the difference between what was allowed by standard costs, which are the budget allowances, and what was actually spent for the output achieved. This difference is called a variance.
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∙ 13y ago
A variance is a statistical measure that quantifies the spread or dispersion of data points in a dataset. It indicates how much each data point differs from the mean of the dataset. A higher variance value suggests a wider spread of data points, while a lower variance value indicates a more clustered data distribution.
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Is mean used to describe the variance of data?
Yes.
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.
When would a variance be labeled as favorable?
a
What does montony means?
Monotony is a word used to describe someone who does not appear to have interest in what they are talking about. There is no emotion or variance in their tone when they talk.
An analysis of variance differs from a t test for independent means in that an analysis of variance?
Analysis of Variance (ANOVA) compares 3 or more means. The t-test would only compare 2 means.
What difference between a favorable variance and an unfavorable variance?
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
What is the significance of variance in statistics?
Variance is a measure of "relative to the mean, how far away does the other data fall" - it is a measure of dispersion. A high variance would indicate that your data is very much spread out over a large area (random), whereas a low variance would indicate that all your data is very similar.Standard deviation (the square root of the variance) is a measure of "on average, how far away does the data fall from the mean". It can be interpreted in a similar way to the variance, but since it is square rooted, it is less susceptible to outliers.
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.
What are the variances in a 4 variance analysis?
efficiency variance, spending variance, production volume variance, variable and fixed components
What factors causes Budget Variance?
There are 7 variances associated with a budget ( which are generally calculated for controlling purposes) 1- Material Price variance 2- Material Quantity variance 3- Labor rate variance 4- Labor efficiency variance 5- Spending variance 6- Efficiency variance 7- Capacity variance
Standard deviation considered a crude measure of variance?
No. Well not exactly. The square of the standard deviation of a sample, when squared (s2) is an unbiased estimate of the variance of the population. I would not call it crude, but just an estimate. An estimate is an approximate value of the parameter of the population you would like to know (estimand) which in this case is the variance.
Which is not a measure of dispersion range or variance?
Variance
