What Is Price Variance?
The price difference is the difference between the actual cost price of some inputs and the budget price.
price gap
Right!
- Chinese name
- price gap
- Definition
- Difference between actual cost price and budget price
- Nature
- the term
- Often used
- Analysis of material price differences
- The price difference is the difference between the actual cost price of some inputs and the budget price.
- price gap:
- This term is often used in the analysis of material price differences.
- Example: A budget allows 5 kg of material to be consumed per unit of product at £ 2 per kg. The actual production of 1,000 units consumes 5,000 kilograms of material at a price of 2.10 pounds per kilogram. The total cost is therefore £ 10,500, with an unfavorable price difference of £ 500 (0.10 * 5000).