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Former Member
May 11, 2010 at 12:45 PM

Variance calculation of prod order

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Hello

The output material of production order is valuated at standard price.

I would like to clarify how the variance calculated in this case.

I guess it equals to

actual costs - total GR from production order at standard price

I realized that the variance calculation method depends on how material is valuated. If material is valuated at average moving price then te variance calculated as follows :

actual costs - planned costs

Please confirm or argue my suggestions as I am not sure

Thanks