Communiquez avec les autres et partagez vos connaissances professionnelles

Inscrivez-vous ou connectez-vous pour rejoindre votre communauté professionnelle.

Suivre

What is the direct material price variance?

user-image
Question ajoutée par Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)
Date de publication: 2016/04/26
mohammed shahnawaz ahmed
par mohammed shahnawaz ahmed , Financial analyst , JP FINANCIAL AND INVESTMENT SERVICES

MATERIAL PRICE VARIANCE  is the variance caused by the difference between the actual price paid and the standard price of the direct materials.This can be calculated as follows:

actual quantity*(actual price paid-standard price)

KHALID HAMID SIDDIQUI
par KHALID HAMID SIDDIQUI , Assistant Manager , Toyota - Indus Motor Company

The direct material price variance is the difference between Standard Material Price & Actual Material Price. That is

 

Material Price Variance = Actual Quantity X Standard Price - Actual Quantity X Actual Price