Question

Assume material price variance is Rs. 1600 (adverse) and material usage variance is Rs. 1,400 (adverse). What will be the material cost variance?​

Answer 1

Answer:

Material Cost Variance gives an idea of how much more or less cost has been incurred when compared with the standard cost. Thus, Variance Analysis is an important tool to keep a tab on the deviations from the standard set by a company.