STANDARD COSTING &

VARIANCE ANALYSIS
 2

Standard
Costing
-accounting system that
uses standard costs to
account for the units that
flow in the manufacturing
process
 3

BENEFITS:
▫ Minimizes bookkeeping costs
▫ Provides data useful for product costing
▫ Useful for planning and forecasting the
necessary amounts of labor, materials and
other resources needed for production
 4

MATERIAL STANDARDS
 5

VARIANCE
▫ The difference between the actual cost and standard
cost
▫ A key element for measuring performance of a cost
center.
Cost Center Example
Manufacturer’s cost centers:
Often a department within a
company. The manager and - Each of its production
employees of a cost center are department
responsible for its cost but are not - Each of the service departments
directly responsible for revenues. - A company’s GS&A departments
6
 7

VARIANCE ANALYSIS
▫ Process of computing and interpreting variances.
▫ Process of categorizing the nature (favorable or
unfavorable) of the differences between standard and
actual costs and determining the reasons for those
differences.
▫ Useful to management because it points to the areas
of operations most in need of management’s
attention.
 8

Variance Analysis
 9

Material Variances
▫ Material cost
Material Price
▫ 2 factors:. Variance(MPV)
Quantity and Price Material Quantity
▫ actual cost less
actual quantity @ Variance
standard price ▫ difference between
standard quantity
▫ causes:
allowed and actual
 fluctuation quantity used
 no purchase discount ▫ causes:
 high transportation  defective materials
cost  inexperienced workers
 poor supervision
 lack of proper equipment
 poor control over wastes or
spoilages
 10

There are different methods in

computing material variances:
1. Formula-based
2. Cost Line Method
3. Three way analysis
FORMULA-BASED
MPV (AP-SP)*AQ = Pxxx Favorable/Unfavorable
MQV (AQ-SQ)*SP = xxx Favorable/Unfavorable
Material Cost Variance Pxxx Favorable/Unfavorable
COST LINE METHOD
AP x AQ SP x AQ SP x SQ

MPV MQV

Total Material Variance

Three Way Analysis
MPV (AP-SP)*SQ = Pxxx Favorable/Unfavorable
MQV (AQ-SQ)*SP = xxx Favorable/Unfavorable
MPQV (AP-SP)*(AQ-SQ) = xxx Favorable/Unfavorable
Material Cost Variance = Pxxx Favorable/Unfavorable
 14

BIG
CONCEPT
Bring the attention of your audience over a key
concept using icons or illustrations
 15

YOU CAN ALSO SPLIT YOUR CONTENT

White Black
Is the color of milk and fresh Is the color of coal, ebony, and of
snow, the color produced by the outer space. It is the darkest
combination of all the colors of color, the result of the absence
the visible spectrum. of or complete absorption of
light.
 16

A PICTURE IS WORTH A
THOUSAND WORDS
A complex idea can be
conveyed with just a single
still image, namely making it
possible to absorb large
amounts of data quickly.
 17

WANT BIG
IMPACT?
USE BIG IMAGE.
USE DIAGRAMS TO EXPLAIN YOUR IDEAS
18

Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet,
consectetur adipiscing. Lorem consectetur adipiscing. Lorem
ipsum dolor sit. ipsum dolor sit.

20XX 20XX

20XX 20XX

Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet,
consectetur adipiscing. Lorem consectetur adipiscing. Lorem
ipsum dolor sit. ipsum dolor sit.
 19

AND TABLES TO COMPARE DATA

A B C

Yellow 10 20 7

Blue 30 15 10

Orange 5 24 16
MAPS
20

our office
 21

89,526,124
Whoa! That’s a big number, aren’t you proud?
 22

89,526,124$
That’s a lot of money

185,244 users
And a lot of users

100%
Total success!
 OUR PROCESS IS EASY
23

STEP 1 STEP 2 STEP 3

Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet, Lorem ipsum dolor sit amet,
consectetur adipiscing elit. consectetur adipiscing elit. consectetur adipiscing elit.
Duis sit amet odio vel purus Duis sit amet odio vel purus Duis sit amet odio vel purus
bibendum luctus. Morbi iaculis bibendum luctus. Morbi iaculis bibendum luctus. Morbi iaculis
dapibus tristique. In hac dapibus tristique. In hac dapibus tristique. In hac
habitasse platea dictumst. habitasse platea dictumst. habitasse platea dictumst.
Mauris convallis quam at. Mauris convallis quam at. Mauris convallis quam at.
Morbi iaculis dapibus tristique. Morbi iaculis dapibus tristique. Morbi iaculis dapibus tristique.
 24

LET’S REVIEW SOME CONCEPTS

Yellow Blue Red
Is the color of gold, butter and ripe Is the colour of the clear sky and Is the color of blood, and because of
lemons. In the spectrum of visible the deep sea. It is located between this it has historically been
light, yellow is found between violet and green on the optical associated with sacrifice, danger
green and orange. spectrum. and courage.

Yellow Blue Red

Is the color of gold, butter and ripe Is the colour of the clear sky and Is the color of blood, and because of
lemons. In the spectrum of visible the deep sea. It is located between this it has historically been
light, yellow is found between violet and green on the optical associated with sacrifice, danger
green and orange. spectrum. and courage.
 25

You can insert graphs from Google Sheets

 26

MOBILE PROJECT
Show and explain your web, app or
software projects using these
gadget templates.

Place your screenshot here

 27

TABLET PROJECT
Show and explain your web, app or
software projects using these
gadget templates.

Place your screenshot here

 28

DESKTOP
PROJECT
Show and explain your
web, app or software
projects using these Place your screenshot here

gadget templates.
 29

THANKS!
Any questions?
You can find me at
▫ @username
▫ [email protected]
 30

CREDITS
Special thanks to all the people who made and released
these awesome resources for free:
▫ Presentation template by SlidesCarnival
▫ Photographs by Unsplash
 31

PRESENTATION DESIGN
This presentation uses the following typographies and colors:
▫ Titles: Titillium Web ExtraLight
▫ Body copy: Titillium Web
You can download the fonts on this page:
https://www.fontsquirrel.com/fonts/titillium

Bluish gray #6e86b6 · Dark bluish gray #465573

You don’t need to keep this slide in your presentation. It’s only here to serve you as a design guide if you need to
create new slides or download the fonts to edit the presentation in PowerPoint®
 32
SlidesCarnival icons are editable shapes.

This means that you can:

● Resize them without losing quality.
● Change line color, width and style.

Isn’t that nice? :)

Examples:
 33

😉
Now you can use any emoji as an icon!
And of course it resizes without losing quality and you can change the color.

How? Follow Google instructions

https://twitter.com/googledocs/status/730087240156643328

✋👆👉👍👤👦👧👨👩👪💃🏃💑❤😂
😉😋😒😭👶😸🐟🍒🍔💣📌📖🔨🎃🎈
🎨🏈🏰🌏🔌🔑 and many more...