Material Cost Control

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Definitions

Direct Materials Price Variance Standard Costing Variance Analysis Budgeted Profit Production Costs Material Cost Control

An accounting term used in standard costing to measure the difference between the actual cost of direct materials and the standard cost, identifying favorable or adverse variances that affect budgeted profit.

Definitions

Direct Materials Usage Variance

Direct Materials Usage Variance Standard Costing Variance Analysis Material Cost Control Budgeted Profit Impact

Direct Materials Usage Variance is a key metric in standard costing systems, evaluating the difference between the actual and standard quantities of materials used in production.