ECONOMICS

Detailed explanation-1: -It is the difference between the standard cost of direct materials specified for the output achieved and the actual cost of direct materials used.

Detailed explanation-2: -1. Standard costs are the estimated costs of labour, material, and other costs of production. Actual Costs, on the other hand, are those realized during the period and compared at the end of the period. This difference between the standard cost vs actual cost is termed as Variance.

Detailed explanation-3: -Yield variance is the difference between actual output and standard output of a production or manufacturing process, based on standard inputs of materials and labor. The yield variance is valued at standard cost.

Detailed explanation-4: -Variance refers to the difference between the standard cost and the actual cost. Variance represents the amount of this difference between these two costs and may classified as favorable or unfavorable.

Detailed explanation-5: -Standard costing variance analysis If the actual cost is greater than the standard cost, then this is an unfavourable variance. If the standard cost exceeds the actual cost then this means that the business is spending less than expected, and is favourable.