What Is a Differential Rate?

The difference between the three-difference method and the two-difference method is that it further decomposes the energy difference in the two-difference method into a difference in yield and a difference in efficiency.

Three-difference method

Right!

The difference between the three-difference method and the two-difference method is that it further decomposes the energy difference in the two-difference method into a difference in yield and a difference in efficiency.

Three-difference method can better explain

The relevant calculation formulas are:

Consumption difference = actual fixed manufacturing cost under actual output-standard fixed manufacturing cost under budget output = actual fixed manufacturing cost-budget output × man-hour standard × standard allocation rate = actual fixed manufacturing cost-budget production standard man-hour × standard allocation rate = (Standard working hours under budget output-actual working hours under actual output) × standard allocation rate

Efficiency difference = (actual working hours under actual production-standard working hours under actual production) × standard distribution rate