📘 Core concepts
- 1Standard cost: predetermined cost based on technical estimates.
- 2Variance: difference between actual and standard.
- 3Material variances: Cost (Price + Usage); Usage = Mix + Yield.
- 4Labour variances: Cost (Rate + Efficiency); Efficiency = Mix + Yield + Idle Time.
- 5Overhead variances: Variable (Expenditure + Efficiency); Fixed (Expenditure + Volume = Capacity + Efficiency + Calendar).
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