Usage Variance

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Definitions

Direct Materials Cost Variance Price Variance Usage Variance Standard Cost Actual Cost Production Costs

A measurement that combines the direct materials price variance and the direct materials usage variance to compare actual and standard costs of direct materials consumed in actual production.

Definitions

Direct Materials Usage Variance

Direct Materials Usage Variance Usage Variance Cost Accounting Production Efficiency Manufacturing Budget Variance

Direct Materials Usage Variance measures the efficiency of a company's use of materials in the production process by comparing the actual quantity used to the standard quantity expected to be used.