Backwards Variances

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Any idea what these are all about - can't find any reference to them in the Osborne books?<BR>Does anyone have any worked examples?<BR>PS. Good Luck for June!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    Backwards Variances

    <BR>I think it's starting from the variance and working backwards to find the standard cost / actual quantity / whatever it asks for!
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Backwards Variances

    If you set out your formulae and put in the figures given, you then go through calculating the blanks. It's a bit like SoDuko.<BR><BR>Make sure you put in the derivation of each number i.e. for the line in Material price variance you would have: Actual quantity purchased @ standard price, if you know one of them, put it in otherwise leave the written legend until you can calculate it.

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