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Overhead variances

Unit 7: Cost Accounting for Planning and ControlTopic 4 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 capacity, efficiency and spending variances

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

Curriculum Scope

  • Concepts and calculations of capacity, efficiency and spending variances

Detailed Microsyllabus

  1. Overhead-variance framework

    1. Standard or budgeted overhead and actual expenditure.
    2. Activity and output measures.
    3. Separate fixed and variable elements where prescribed.

  2. Variance calculation

    1. Capacity, efficiency and spending variances.
    2. Use the budget assumptions and standard activity basis supplied.
    3. Interpret causes and reconcile totals.

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.