Skip to content

Labour variances

Unit 7: Cost Accounting for Planning and ControlTopic 3 of 7
Browse the Cost and Management Accounting syllabus

Cost and Management Accounting

8 units
On this page

What the syllabus expects

  • Concepts and calculations of cost, efficiency, rate, mix, idle-time and yield variances

Labour 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 labour variances.
  • Prepare the relevant cost records or calculations and interpret their use in managerial planning and control.

Curriculum Scope

  • Concepts and calculations of cost, efficiency, rate, mix, idle-time and yield variances

Detailed Microsyllabus

  1. Labour variances

    1. Standard and actual hours and wage rates.
    2. Total cost, rate and efficiency variances.
    3. Use consistent output and time measures.

  2. Additional variances

    1. Labor mix, idle time and yield.
    2. Calculate according to the exercise's wage and efficiency conventions.
    3. Reconcile components without double counting idle-time 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.