1) semi-skilled worker performing skilled work
2) inferior raw materials
3) poor process scheduling
Changes in quality of inputs from manufacturer.
An unfavorable materials quantity variance means excessive use of direct materials. The excessive use of direct materials may be the result of a number of reasons including: inexperienced or untrained workers, lack of motivation, lack of proper supervision, use of outdated machinery, faulty equipment, purchase of unsuitable or substandard materials, and frequent power failures.
Difference between actual amount and budgeted amount is called "Variance" and variance analysis is done to find out the reasons for variance
Managers compare the actual line item amounts for manufacturing overhead with the budgeted amounts. Managers investigate large differences between actual and budgeted amounts to identify the reasons why actual costs differ from planned or budgeted costs.
Under standard cost method, standard costs for material labor and overheads are determined first and all these costs are charged to production on that standard costs and quantity basis and after that variance analysis is done to find out the reasons for differences in actual costs with standard costs as basis for analysis.
Changes in quality of inputs from manufacturer.
An unfavorable materials quantity variance means excessive use of direct materials. The excessive use of direct materials may be the result of a number of reasons including: inexperienced or untrained workers, lack of motivation, lack of proper supervision, use of outdated machinery, faulty equipment, purchase of unsuitable or substandard materials, and frequent power failures.
Difference between actual amount and budgeted amount is called "Variance" and variance analysis is done to find out the reasons for variance
Design faults unfavorable climate
due to killing of born baby after knowing as they are girls. and due to killing of girl unborn baby.
Manufacturing and tradeNatural gasCoal
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.
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the reasons of studying management manufacturing
geothermal cost money like cost efficiency, it is an expensive price of geothermal, and it has a very big price to pay
name of departments that may facilitate the activities of a large cell phone manufacturing concern. Consolidate your suggestions by giving reasons.
There are a number of reasons for causinf DM Price Variance. Adverse Price Variance 1) Demand > Supply (Low Supply, High Demand result in price to be material purchase to be more costly) 2) Change to a higher grade material quality. 3) Purchases made from oversea, exchange rate incurred 4) Purchases made in smaller quantity As for favourable DM price variance, explanation will be opposite of the above given.