Ch 5 · Standard Costing & Variance Analysis

⭐ Important points (exam-critical)

• ⭐F (Favourable) when actual < standard for cost; A (Adverse) otherwise.
• ⭐Standards: Ideal, Normal, Basic, Current — each suited to different purposes.
• ⭐Reconciliation between standard and actual profit using variances is a 12-mark sum.
• ⭐Mix variance arises only when there are 2+ inputs; total of sub-variances must equal main.