By the end of this session you should be able to:

  • Explain why planned standard costs, prices and volumes are useful
  • Calculate variances for materials, labour, variable overheads, sales prices and sales volumes 
  • Prepare a statement that reconciles budgeted profit with actual profit calculated using marginal costing 
  • Explain why variances could have arisen and the inter-relationships between variances.

and answer questions relating to these areas.