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Variance Analysis


Overview

Standard Costing and Variance Analysis

Every business has its own unique financial goals and targets. Some reach their targets with pinpoint precision, while others perform far better or worse than expected. Standard costing and variance analysis is the process by which the causes of variations between expected performance and actual performance are investigated and analysed. It can apply to both income and expenses alike – anywhere deviations from established financial performance standards exist. If expected income over a set period of time was set at £250,000, actual income of £190,000 warrants immediate investigation. Only this way can the cause be established and measures implemented, in order to prevent future deviations from occurring.

This tutorial explores variance analysis accounting as one of the most important financial management tasks for any organization. Along with direct issues involving income and expenses, the concept of inaccurate forecasting is also discussed. The content covers several key considerations, including direct material and labour variances, sales variances and how to accurately report and control variance where detected.

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Objectives

After the completion of this course learners will be able to:

  • Describe the ways in which the management can monitor and guide the operations of a business to meet the desired goals, particularly in respect of costs and sales.
  • Identify the factors responsible for deviation of actual performance from the standard performance and in taking such remedial measures as may be necessary.

Programme Content

Topics:

  • Meaning of Variance
  • Direct Material Variances
  • Direct Material Price Variance
  • Direct Labour Variances
  • Direct Labour (Wages) Rate Variance
  • Direct Labour Efficiency (Time) Variance
  • Overhead Cost Variance (OCV)
  • Variable Overheads Cost Variance (VOCV)
  • Fixed Overhead Cost Variance (FOCV)
  • Sales Price Variance
  • Control of Variances
  • Variance Reporting

Target Audience

  • New or recent recruits to banking and financial organizations
  • Operations and support staff
  • Finance and accounting staff
  • Dealers and Traders

Prerequisites

No prior knowledge is required to take this unit.

Overview

  • Participants:8 - 400
  • Duration: 2 - 3 hours
  • Participation:Only collaborative

Key Benefits

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Course Level
Study Method Online
Course Duration 10 Hours
Start Date on going
Awarding Body
Pay in Instalment Full Fee £ 120, Deposite £ , ( £ 0/month )
Full Fee:    £ 120

Discount:    £ 30

Pay Today:    £ 90


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Pay in Instalment Full Fee £ 120, Deposite £ , (£ 0/month)
you can pay Staff Training Solutions using payatrader
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