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متابعة

What is the difference between normal usage variance and abnormal usage variance?

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تم إضافة السؤال من قبل Mohamed Arshad , Financial Analyst, Costing & Inventory Control , Al Rabie Saudi Foods Company Limited
تاريخ النشر: 2017/05/12
Frank Mwansa
من قبل Frank Mwansa , ACCOUNTING LECTURER , FREELANCER

Normal usage variance is the variance expected during during process.  Abnormal usage variance is the variance not expecting during process.it the variance resulting when actual variance is greater than normal variance.

SASIKUMAR AMMANATH
من قبل SASIKUMAR AMMANATH , Finance Manager , Oman Gulf Energy

Normal usage variance is the variance expected during a process and we can't avoid this variance. Abnormal usage variance is the variance which is not expected during the course of a process and this is avoidable variance.

Sagar Kumar
من قبل Sagar Kumar , Financial Accountant / Management Accountant , Upwork

Normal usage variance: Due to normal & expected reasons like

Normal:-The standard needs to be revised (Outdated standards being used)Expected:-When we know,% will be wasted during the production process

Abnormal Usage Variance: Due to unexpected events like

-Machine breakdown during production process-Percentage waste is higher than expected (%)

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