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Technical

Variance Analysis II Logo cgma

  Kaplan Publishing Limited |   $63.20 - 99.00 |   CPE: 4.0 |   AICPA |   Aug 2015 |   Business Mgmt. & Organization |   AICPA Store
Who Will Benefit?
  • Management accountants wanting to develop skills in financial performance management
  • CGMA exam candidates
Topics Discussed:
  • Variance investigation
  • Interpretation of variances
  • The controllability principle
  • Standard costing in the modern manufacturing environment
  • McDonaldization
  • Advanced material variance – mix and yield
  • Advanced labor variance – mix and yield
  • Planning and operational variances
Learning Objectives

When you complete this course, you will be able to:

  • Identify causes of material, labor, overhead, and sales variances
  • Recognize the advantages and disadvantages of standard costing in the modern production environment
  • Calculate material, labor, and sales variances
  • Apply standard costing methods including the reconciliation of budgeted and actual profit margins
  • Differentiate between planning and operational variances
This CPE course is included in the 60+ hours of Financial Performance Management Program. It can also be purchased individually or as a part of Forecasting and Performance Evaluation.

Variances arise naturally in standard costing because a standard cost is a long term average cost. In any period, actual costs may be higher or lower than standard costs, but in the long run, these should cancel out if the process is under control. This CPE course explores variance investigation, including when a variance should be investigated. It explains different interpretations of variances as well as possible interdependence between variances. In addition, it includes the controllability principle, standard costing in the modern manufacturing environment as well as McDonaldization. The course also explores advanced material variances, how to calculate mix and yield variances, advanced labor variances, planning and operational variances, causes of planning variances, as well as the benefits and problems of planning variances.

Topics covered:
  • Management accounting: Technical: Cost accounting & management: Cost accounting, Foundational
  • Management accounting: Technical: Management reporting & analysis: Variance analysis, Foundational

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