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Could I calculate and reconcile the total variance of Materials when there is a difference between the quantity purchased and quantity used?

If we could calculate. Then what is best practice?

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تم إضافة السؤال من قبل Munawar hussain , Manager Accounts & Costing , HAQ Agri & Dairy Farms
تاريخ النشر: 2013/09/25
Munawar hussain
من قبل Munawar hussain , Manager Accounts & Costing , HAQ Agri & Dairy Farms

How Mr. Zubair? How you will reconcile?

 

Muhammad Zubair
من قبل Muhammad Zubair , CFO / Chief Accountant , RH Group

Yes, becuase total quantity purchase is irrelevant for calculating total material variance. What we need to do is to calculate avearge purchase cost for calculating price variance.

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