An inventory variance report shows the difference between previous recorded inventory quantity and correct inventory quantity which is discovered immediately after a physical count. It also reports on the value difference the quantity variances caused.
An inventory variance report shows the difference between previous recorded inventory quantity and correct inventory quantity which is discovered immediately after a physical count. It also reports on the value difference the quantity variances caused.
Favourable variance is that variance which is good for business while unfavourable variance is bad for business
There are many objectives of logistics management. They include operating objectives, rapid response, minimum inventory, minimum variance, movement consolidation, and quality improvement.
Negative price variance is when the cost is less than budgeted. Volume variance is a variance in the volume produce.
efficiency variance, spending variance, production volume variance, variable and fixed components
first we have to take the weight of the empty bottle list. then to take the weight of the bottle with remaining liquor. take the variance in gms and convert it into litres.
Receiving can affect direct materials price variances if there is no inventory. The accounting department will mark up prices to reflect a shortage.
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
Variance
Unequal in Variance
Equal in Variance
Since Variance is the average of the squared distanced from the mean, Variance must be a non negative number.