Double-entry Bookkeeping
Double-entry bookkeeping, also known as double-entry accounting, is a method of bookkeeping that relies on a two-sided accounting entry to maintain financial information. It is…
Accounting
Accounting Identity – In Accounting
An accounting identity is an equality that must be true regardless of the value of its variables in accounting, finance, and economics, or a statement…
Concept of Material Usage or Quantity Variance (MUV)
The discrepancy between the actual amount of materials used in the manufacturing process and the amount planned to be used is referred to as a…
Concept of Material Mix Variance (MMV)
The material mix variance is caused by a divergence in the actual composition of a material mixture from the standard one. The difference between the…
Concept of Material Yield Variance (MYV)
The material yield variance is the difference between the actual amount of material used and the standard amount predicted to be used, multiplied by the…
Material Quantity Variance (MQV)
A material quantity variation is the difference between the actual amount of materials used in the manufacturing process and the amount projected to be utilized.…
Concept of Labor Cost Variance (LCV)
The difference between the standard direct labor cost for the actual production and the actual labor cost paid is referred to as direct labor cost…
Causes of a Labor Rate Variance
The labor rate variation is the difference between the actual and standard cost of direct labor. The gap between the actual amount paid and the…
Major Functions of Memorandum (Memo)
Memos are used to communicate information about an organization’s day-to-day operations. It typically contains orders, instructions, policies, and procedures, among other things. From the top…
Concept of Labor Rate Variance (LRV)
The labor rate variation is the difference between the actual and predicted labor costs. It is the gap between the specified standard pay rate and…
Concept of Labor Efficiency Variance
Variance is a statistical measurement term that describes the difference between individual numbers in a data set and the mean of that data set. The…
Concept of Labor Mix Variance
The analysis of mix variances is an essential component of cost accounting. Any significant case study or project will necessitate extensive calculations based on these…
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