Cost and variance measures
Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Performance Management. 15 min read, ~2,221 words.
Master-budget variance = sales-volume variance + flexible-budget variance. The flexible budget restates revenue and variable costs at actual output using standard prices. Favorable (F) raises operating income; unfavorable (U) lowers it. Sign convention is consistent across revenue and cost variances. Price (rate) variance isolates input cost differences using actual quantity...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- 1C1
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