B Com Exam > B Com Questions > Which type of variance is calculated as the d...
Start Learning for Free
Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?
- a)Material Cost Variance (MCV)
- b)Material Price Variance (MPV)
- c)Material Usage Variance (MUV)
- d)Material Mix Variance (MMV)
Correct answer is option 'C'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Most Upvoted Answer
Which type of variance is calculated as the difference between the sta...
The correct answer is Option C. Material Usage Variance (MUV) is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price. It measures the variance caused by the difference in the quantity of material used compared to the standard quantity.
Free Test
FREE
| Start Free Test |
Community Answer
Which type of variance is calculated as the difference between the sta...
Material Usage Variance (MUV)
Material Usage Variance (MUV) is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price. It helps to measure the efficiency of using materials in production.
Calculation:
- MUV = (Standard Quantity - Actual Quantity) x Standard Price
Explanation:
- Standard Quantity: The amount of material that should have been used based on the standard production requirements.
- Actual Quantity: The actual amount of material used in production.
- Standard Price: The predetermined cost of the material per unit.
Interpretation:
- A favorable MUV indicates that less material was used than expected, leading to cost savings.
- An unfavorable MUV suggests that more material was used than planned, resulting in increased costs.
Importance:
- Helps in identifying inefficiencies in material usage.
- Allows for corrective actions to be taken to improve material usage and reduce costs.
- Provides insight into the effectiveness of material management practices.
Material Usage Variance (MUV) is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price. It helps to measure the efficiency of using materials in production.
Calculation:
- MUV = (Standard Quantity - Actual Quantity) x Standard Price
Explanation:
- Standard Quantity: The amount of material that should have been used based on the standard production requirements.
- Actual Quantity: The actual amount of material used in production.
- Standard Price: The predetermined cost of the material per unit.
Interpretation:
- A favorable MUV indicates that less material was used than expected, leading to cost savings.
- An unfavorable MUV suggests that more material was used than planned, resulting in increased costs.
Importance:
- Helps in identifying inefficiencies in material usage.
- Allows for corrective actions to be taken to improve material usage and reduce costs.
- Provides insight into the effectiveness of material management practices.
|
Explore Courses for B Com exam
|
|
Similar B Com Doubts
Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer?
Question Description
Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer?.
Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer?.
Solutions for Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com.
Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.
Here you can find the meaning of Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer?, a detailed solution for Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? has been provided alongside types of Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which type of variance is calculated as the difference between the standard quantity and the actual quantity of material used, multiplied by the standard price?a)Material Cost Variance (MCV)b)Material Price Variance (MPV)c)Material Usage Variance (MUV)d)Material Mix Variance (MMV)Correct answer is option 'C'. Can you explain this answer? tests, examples and also practice B Com tests.
|
|
Explore Courses for B Com exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup