Question

With reference to cost management, explain following:

(i) Material variance,

(ii) Fixed overhead variance,

(iii) Variable overhead variance,

(iv) Labor variance, and

(v) Sales variance.

06 Mar 2026
Answer :
Word Count : 309
Cost management in power distribution organizations involves controlling and analyzing various costs to improve efficiency and profitability. Variance analysis is an important technique used to compare actual performance with standard or budgeted performance and identify deviations. Material variance refers to the difference between the standard cost of materials that should have been used for a particular level of output and the actual cost of materials used. It helps in analyzing whether materials were purchased at higher prices _______ _______ _______ ______ ______.
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