Overhead Variance

Definitions

Fixed Overhead Expenditure Variance Standard Costing Overhead Variance Budget Variance Cost Accounting Management Accounting

Fixed Overhead Expenditure Variance in standard costing refers to the difference between the fixed overhead budgeted and the actual fixed overhead incurred.

Definitions

Production Cost Variance in Standard Costing

Production Cost Variance Standard Costing Variance Analysis Direct Materials Variance Direct Labour Variance Overhead Variance Cost Management

Production Cost Variance in standard costing measures the difference between standard costs and actual costs for production. Understanding this variance helps in identifying efficiency levels and cost management effectiveness.

Definitions

Profit Variance

Profit Variance Standard Costing Budgeting Operating Profit Sales Variance Direct Labor Variance Direct Material Variance Overhead Variance

In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labor, direct material, and overhead variances provides the management of the organization with information regarding the source of the gains and losses compared to the predetermined standard.