Standard Purchase Price

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Definitions

Direct Materials Mix Variance Standard Costing Direct Materials Usage Variance Standard Mix Standard Purchase Price Standard Selling Price

In standard costing systems, the direct materials mix variance is part of the direct materials usage variance. It represents the difference between the total material used in standard proportions (standard mix) and the material used in actual proportions, valued at standard prices (standard purchase price and standard selling price).

Definitions

Standard Purchase Price

Standard Purchase Price Direct Material Direct Materials Price Variance Standard Costing Cost Management Accounting Management Accounting

Understand the concept of Standard Purchase Price, a predetermined price set for each commodity of direct material for a specified period, used in a system of standard costing.