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Material variances

Unit 7: Cost Accounting for Planning and ControlTopic 2 of 7
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

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What the syllabus expects

  • Concepts and calculations of cost, price, usage, mix and yield variances

Material variances

Bachelor of Business Studies (BBS) — Second Year

Subject: Cost and Management Accounting (MGT 212)

Unit 7: Cost Accounting for Planning and Control

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

  • Explain the scope and key elements of material variances.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Concepts and calculations of cost, price, usage, mix and yield variances

Detailed Microsyllabus

  1. Material variances

    1. Standard and actual material quantity and price.
    2. Total cost, price and usage variances.
    3. State the sign and favorable or unfavorable convention.

  2. Mix and yield

    1. Composition of actual and standard input mixes.
    2. Output yield relative to the prescribed standard.
    3. Calculate and reconcile mix, yield and usage effects.

Curriculum reference: Tribhuvan University, Faculty of Management, revised four-year BBS curriculum, PDF pages 31-34.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit or component allocations apply at their stated level; no separate topic hours or marks are assigned here.