Direct Materials Variance Analysis
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- čas přidán 5. 08. 2024
- This video demonstrates how to conduct a variance analysis for direct materials. A comprehensive example is provided to show how both the price variance and quantity variance are calculated. The example also shows how variance analysis differs when the quantity purchased differs from the quantity used.
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Better than all my masters-level profs, and my textbooks aren't close to as understandable. YOU THE BEST.
Thank you for the kind words!
I literally have my exam tomorrow and covered a considerable portion of syllabus by just going through your videos. Thank you for sharing. You're the best!
I understood everything within minutes! Saved me hours trying to comprehend my textbooks and online lecturer. I have an exam on Tuesday and you sir, are a life saver!
Don’t know why I’m paying so much for someone who teaches this in a way that is impossible to understand. You’re awesome! Thanks so much.
I appreciate that!
These videos are such a huge resource for me in my accounting courses! I stared at the same problems for hours and watched your videos on variances twice and was able to get it. You explain it so simply.
Thank you! I'm glad you're learning and hope you do well on your exams!
I'm sorry but you've managed to make the most complicated lecture I'd ever been through, into the most simple calculation
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+tuyet mai Thank you for the kind words! I plan to release some new videos very soon :) Best wishes
Studying for the CMA exam and you really brought this section home for me. thank you
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This man just covered my whole Standard Costing Lecture in less than an hour and 30 minutes that we take 2 weeks to study at my varsity and I have never been confident about standard costing as I have ever been since doing it for the past 4 years. Thank you very much Edspira
Thank you so much, none of my text books explain this clearly. This is very clear and easy to follow.
Seriously these videos are saving my CMA exam. Thank you so much!!!
Also, wish me luck!
Good luck! I hope you do outstanding!
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My Dr. prof repeated the textbook made me feel like I am in nowhere.
15' clear me up. I am your big FAN. Thank you.
I wished I found this earlier, was studying for my exam tomorrow and this is by far the best explanation I have ever heard. YOU ARE AMAZING!
Thank you for the kind words. I hope you did well on your exam!
Thank you for getting me through accounting. All of your videos are so informative and understandable. I graduate in 2 days and I cant explain over the years in business school how much they've really helped me. Sincerely, thank you.
can't thank you enough the video is great and content specific and to the point!!!
Agreed! WAY better than anything I learned in class or from trying to 'teach' myself from the text. Thank you SO much!
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Thank you for making this so simple! I have watched videos provided by my college and read textbook explanations but was so confused... until this video. Feel like a pro now! :)
Just an FYI these videos helped immensely for my CPA; MY CPA! Thanks man!
this is soooooo clear, just get over it in ten minutes...awesome:)
Nicely presented and explained, and so simple to understand! Thanks for taking the time to produce this video.
thanks..very straightforward and understanding.
Wow this is explained amazingly well. Thankyou!
This video is excellent. Thank you for sharing, you have brilliant teaching skills and so easy to understand. This is helping me more than all my course information put together. Thank you!
Thank you for such kind words!
Helpful video. Thanks.
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solid concepts!!
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Great explination, of a valuable tool. Thanks for your efforts!
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Saving lives, one formula at a time!
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Thanks this really clarified my instructor's lecture
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Thank you!
Saviour!, great vids
Your videos are so EASY to comprehend! Thank you for using laymans terms and real language. At 9:24 I'm beginning to think of the woodchuck chucking wood! (how much wood would we use if we could, would use wood...)
I did the same thing! lol
Great sessions... Even college classes were not close to this... Thanks for wonderful work & effort !1
Glad you like them!
@@Edspira Keep up the good work !!
great stuff
Thank you for us .. my instructor prefers us to use formulas and I can’t remember them . I prefer this column way you’ve illustrated
Thank you very much
I just paused the video halfway to say THANK YOU!
Thank you for the kind words my friend!
Thank you Sir
am from medical background but this make me understand better,thank u
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Hi Sir, if we were to calculate the closing inventory value, what price/unit would we use? Standard or Actual?
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Thank you!
have you not made a video on return on assets? i cant find it
Hi, I'm just wondering why it doesnt work when you do AP x SQ in the middle - why does it have to be AQ x SP?
hello can you please drop a link for the sales mix variance im not able to find the video
Not sure I have produced that video, I'll try to get to it later this summer or fall
Why we use (AP-SP)AQ to compute price variance instead of (AP-SP)SQ??
you're the fucking man... have a final tomorrow and this really cleared everything up. THANK YOU!!
Awesome! I hope you aced that exam. Take care and have a great summer!
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THOUGHT ID NEVER UNDERSTAND THIS BEFORE MY EXAM IN 3 DAYS
LOVE FROM THE UK ;) THANK YOU SOO MUCH
+Chioma o It was my pleasure. Thank you for the kind words- I'm glad you found the videos useful. I hope you get a great score on your final exam and have a fun-filled summer! Best wishes
thanks you helped me get an A
Legend 🙏🏾 thank u
Happy to help!
Hello sir, what if the question give us a beginning inventory? With a different price than the purchased materials, How do we determine the AQ and AP? Thank you in advance
Thanks!
Thank you so much for your support!
This guy is too damn good ,
Where do you lecture?
Can the quantity variance also be identified as the direct material usage variance?
You have explained the Material Variance very well. Thanks alot for Such a useful video.
I have a Question. Why Standard Price is used to calculate the Quantity Variance and why actual price is not used?
Thanks in advance.
The actual price is affected by how good the purchasing manager is at getting a good deal from the supplier. Thus, we use the standard price in this case because we solely want to focus on determining how efficient the company was at using direct materials
thanks alot for your kind reply.
why do we use standard price instead of actual price in determining direct materials usage variance?
hmmm my text book does this with 4 columns, we're missing our flexible budget between aqXsp and sqXsp
Thanks for your videos. I started watching your channel to improve my English and consider that it's very helpful.
When I was studying this kind of analysis called chain substitution method. Maybe it's not accurate translation.
Let me not agree with this video and ask you a question: why do you make calculations with 950? If company produce tables from year to year and they know how much it takes wood to make 1 table (8 pounds) so why did it was bought so much wood?
I assure if firm specializes in wood manufacturing, they should keep some would in the stock for future orders.
So if we perform variance analysis, we must analyze current expenses for production for certain period, i.e. how much wood, labor, etc. we spend to 105 tables (875 pounds). Surplus will be used later.
If we calculate cash flow we use 950.
You are absolutely correct! I note this mistake!
hi would the answer be in negative for price variance if its favourable, thank you in advance to whomever who replies to this comment
Is quantity variance the same as efficiency variance?
can we use "adverse" rather than "unfavourable"?
Hello! what is the actual quantity purchased is the same as actual quantity used. does it affect SQ? Wouldnt there be no variance since there is no difference in used and purchased?
+Dianelis Aballe Yes, you are right. Variance, simply put, is the difference between the standard vs. Actuals. So if it is the same, then no variance :)
the best
Thanks Kostas!
Would appreciate if you changed the color of the paint next time. Otherwise loved your tutorial.
Nuanced explanation on direct materials variance analysis, includes the case where Actual Quantity (Purchased) != Actual Quantity (Consumed), where the calculation of Total Variance would not make sense.
You are absolutely correct! I noted this mistake!
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respex homie
These videos are such a huge resource for me in my accounting courses! I stared at the same problems for hours and watched your videos on variances twice and was able to get it. You explain it so simply.
Thank you!