Actual Costs

Definitions

Adverse Variance (Unfavourable Variance)

Adverse Variance Unfavourable Variance Standard Costing Budgetary Control Budgeted Performance Actual Costs Actual Sales Revenue Financial Analysis

In standard costing and budgetary control, adverse variance indicates discrepancies where actual performance falls short of budgeted expectations, impacting the budgeted profit negatively.

Definitions

Direct Labour Total Cost Variance

Direct Labour Total Cost Variance Cost Accounting Direct Labour Rate of Pay Variance Direct Labour Efficiency Variance Standard Costs Actual Costs Production Costs

The Direct Labour Total Cost Variance is a key metric used in cost accounting to analyze the difference between the actual cost of direct labour and the standard cost allocated for the production of goods.

Definitions

Labour Variances

Labour Variances Cost Accounting Direct Labour Efficiency Variance Direct Labour Rate of Pay Variance Direct Labour Total Cost Variance Standard Costs Actual Costs

Labour variances are a critical measure in cost accounting, used to analyze the difference between the actual labor costs and the standard labor costs. They help in identifying areas where inefficiencies and cost overruns occur.