Standard Costs and Variance Analysis

Рет қаралды 512,708

9 жыл бұрын

This video discusses the use of standard costs in Managerial Accounting. It also provides a comprehensive example to illustrate how standard costs are useful in calculating the price variance and quantity variance.
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Пікірлер: 172

@ashleysanfino8221 7 жыл бұрын

Why can't professors explain it this eloquently? This topic was giving me such a massive headache until I saw this video. You actually explain it, rather than just telling me to memorize a formula. Thank you! You're a godsend!

@ashleysanfino8221 7 жыл бұрын

Also, where are you from? I've been trying to pin your accent but can't figure it out. Chicago transplant maybe?

@Edspira 7 жыл бұрын

No problem, I'm glad you were able to understand it. And thank you for the kind words!

@Edspira 7 жыл бұрын

You are correct! I grew up around the south side of Chicago. It's funny, people always ask me if I'm from Minnesota, Canada, etc. but no one ever guesses Chicago.

@whatthefaddy97 6 жыл бұрын

agreed

@dankuthegreatone2348 2 жыл бұрын

i am doing this topic now and the notes and lecture made no mention of how to calculate standard quantity, very glad for this video made from 2014

@reneefongg 4 жыл бұрын

I tell you what, all your videos save my degree, from Corporate Finance to Management Accounting, I have no idea what my lecturers are talking, You are a life saver!

@ilazer6058 5 жыл бұрын

These videos have been very helpful to me when studying for my managerial accounting final. I'm using the Horngren textbook in class and these videos are so well matched with the material in the textbook. Thank you for making these!

@canestim 5 жыл бұрын

Honestly, best teacher I've ever had, thank you for what you do.

@iceesky Жыл бұрын

i didnt want to listen to my prof's 2 hour lecture of this topic and just end up being more confused, so your vids are incredibly helpful!! and like that you also explain why this is important in real life so I'm really appreciating this topic even more as a bus ad student

@stevemann120 5 жыл бұрын

Upon graduation I am dedicating my degree to you sir! You made it possible!

@GGallion7 9 жыл бұрын

You made the material easy to understand, thank you.

@Edspira 9 жыл бұрын

No problem! Best wishes :)

@louismorgner 3 жыл бұрын

Great quality content. Love the way you break down the different concepts while allowing the viewer to follow along.

@allyu2305 5 жыл бұрын

Thank you so much, this video is awesome! I got a 95 on my first intermediate exam and 92 on the first cost exams, and most of my success came from watching your explanations. Would it be possible to make some videos on overhead variances?

@brianbashala6884 5 жыл бұрын

I found this channel 2 days before my final exam and it helped so much you're the goat edspira thanks!!

@maryroseevangelista4870 6 жыл бұрын

I wish you could make more easy to understand videos like this. It’s one way of showing your unselfish concern to all accounting as well as non accounting students. Thank you !

@devinhsu1305 4 жыл бұрын

I am studying for my CPA and this video helps so much. You are truly amazing!

@Ultimatum12345678910 6 жыл бұрын

You're a wonderful teacher, thank you so very much for your video. You really made this concept seem much more straightforward than how it was presented in my lectures.

@toolplanner 9 жыл бұрын

Good stuff. Straight forward presentation and easy to understand.

@clabelle244 7 жыл бұрын

Do you have videos for variable manufacturing overhead variance and fixed manufacturing overhead variances?

@_R0RY 7 жыл бұрын

Brilliant video, summed up about 50 pages of my text book in 16 mins! Thank you for putting in the time to produce the vids on your channel.

@edvan3407 6 жыл бұрын

Thanks Bro. You saved my college life. You are my standard and actual hero!

@liamsanders1502 5 жыл бұрын

Truly a godsend, thank you for all the work you put into making these videos

@matthewaniol7 6 жыл бұрын

Im currently doing my CPA and i watch all your videos. You make everything so easy to understand. Thanks a lot!

@Edspira 6 жыл бұрын

Happy to help my friend. I hope you pass the CPA, good luck!

@gordonharkness2709 4 жыл бұрын

The std quantity figure is always the wild card on where the calculations go wrong, this explains this rationale clearly. Thanks for that!!

@nacharles2013 6 жыл бұрын

Thank you so very much for the time you spent to make this video.It was excellent and I now understand this topic.Keep up the great work!

@JC-st6fi 6 жыл бұрын

Great video, clear and easy to understand. I learned all this in cost accounting awhile back but this was a much more concise explanation.

@Edspira 6 жыл бұрын

Happy to help!

@praisecherenitembo6570 4 жыл бұрын

This video helped me pass my exam. I was way behind but you made me understand standard costing in a day. Thank you.

@notrosyenough 6 жыл бұрын

I'm using your videos to study for my final and I'm a little upset I didn't find you sooner! You explain the material so well!! Thank you so much, maybe now I will get an A on my exam!!

@LifeisBeyondBeautiful 8 жыл бұрын

Thank you for your lecture video. This is great! You made standard cost and variance analysis easy to understand. I am currently reviewing my knowledge regarding the topic for Philippine CPA Board Examinations. You've been very helpful. You’re great. You’re the best. God bless you. :)

@Edspira 8 жыл бұрын

Thank you for the kind words. I hope you pass your exam and go on to have a successful and happy career! Best wishes

@ninanguyen3401 5 жыл бұрын

Thank you for this great explanation on budgeting and variance, it's very helpful

@barnabasretta1600 2 жыл бұрын

You are the best accounting teacher I have seen!!

@pantsharad 6 жыл бұрын

Thanks for making topic simple, at the end I truly understand it.

@ivanaleksandrov5475 8 жыл бұрын

Thank you so much for all the videos connected with Management Accounting. You have helped me a lot!

@Edspira 8 жыл бұрын

It's my pleasure! Best wishes

@32459 Жыл бұрын

Thank you for explaining this concept in such an intuitive, logical way!! First looking on the lecture slides I thought this must be super complicated, but it is actually simple if one can explain it well. Much appreciated!!

@Edspira Жыл бұрын

No problem, accounting can be intimidating sometimes. I'm glad the video helped make standard costing and variances easier to understand!

@susanrodriguez9438 3 жыл бұрын

I'm so glad this channel exists

@Edspira 3 жыл бұрын

Happy to help!

@tiffanytipton7820 7 жыл бұрын

Thank you so much! This was extremely helpful...you have no idea! Please keep up the good work!

@zippy2u 7 жыл бұрын

Thank you so much for clarifying this process for me.

@andriipidstrela1251 9 жыл бұрын

Wow that is really cool! Thank you, i hope you have here Job-Order costing and profit planning also. Amazing channel

@sgAKAchina 8 жыл бұрын

You are a very good teacher thank you very much!

@vineetvaishnav 9 жыл бұрын

Where can I donate my First born? This is a life saver. Can we more videos on working capital management ?

@bennaylor3674 5 жыл бұрын

This channel has literally saved my ass for two different tests

@DaisyNgobeni 6 жыл бұрын

You made this very easy for me to understand,and it really makes perfect sense,thank you:)

@Edspira 6 жыл бұрын

Awesome. Best of luck to you!

@GMATARO 8 жыл бұрын

I wish you were my instructor! Thank you so much.

@rdsmuts2313 6 жыл бұрын

Thank you for your videos. They really help me understand this subject.

@Edspira 6 жыл бұрын

No problem. Take care!

@candy15861 7 жыл бұрын

This channel just saved my school life

@lindahenry9334 4 ай бұрын

Thank you. You explained how to analyse variances superbly.

@joeturk8159 5 жыл бұрын

“There’s a problem with the popcorn market” lol

@jenns4757 Жыл бұрын

Your videos helped me get an A in my managerial accounting class! THANK YOU!! ❤

@Edspira Жыл бұрын

Congratulations on acing the course!

@sumit6567 5 жыл бұрын

You explained it so nicely that I forgot what I crammed!! Today is my final year exam of B.com (H) in India, and this helped a lot!! Thank you.

@sinethembasithebe3389 Жыл бұрын

God bless the work you do! You truly are a blessing😭😭😭😭😭

@Edspira Жыл бұрын

Thank you!

@doomcloud3164 6 жыл бұрын

I spent 3 hours reading this one chapter.. and this has clarified everything! Thank you!

@Edspira 6 жыл бұрын

Great...I'm glad this video helped you!

@doomcloud3164 6 жыл бұрын

Edspira I forwarded this video to my classmates to view before they tackled the assignment. Got positive reviews back. Thank you again!

@kemotraore4801 8 жыл бұрын

Thank u for showing me how to solve any questions for Variances we need more examples I appreciate it

@DaoWoW 4 жыл бұрын

Hi Michael. This was really informative. In regards to the quantity variance, what if we had a standard quantity of 850 lbs budgeted? would we then use that number instead of the 825lbs (SQ @ Actual x SP)?

@dulcemy14195 4 жыл бұрын

THANK YOU so much for make my life easier.

@khumalosthabisobongumusa6833 5 жыл бұрын

may god bless this man

@ellierd6996 4 жыл бұрын

always by our side! thank u

@antaraanika4481 6 жыл бұрын

You make things so easy to understand. Hands down the best! You should upload more in youtube though

@Edspira 6 жыл бұрын

Thanks Antara! I'm working on more videos :)

@asharamir7463 8 жыл бұрын

Your the reason I'm passing accounting, Thanks man !!!

@Edspira 8 жыл бұрын

+Ashar Amir Thank you for the kind words-- but let me say that you are the one putting in the extra study hours to learn the concept, so all the credit goes to you! Have a great winter break :)

@taurus32_23 9 жыл бұрын

Thanks a ton.Really great stuff :)

@Edspira 9 жыл бұрын

Tomis Alex No problem! Thank you for the kind words!!

@tab3791 7 жыл бұрын

thank you very much, it helped me a lot...

@joubaw5329 6 жыл бұрын

Thank you very much for this video! I do have request though, would you mind making a video on material mix and yield variances somewhere in the near future ? Keep up the good work! I can testify through experience about the value being added, through this channel, to the management accounting student community.

@Edspira 6 жыл бұрын

Thanks Wilhelm. I'll definitely consider your request when I'm making more videos this summer. Best of luck to you!

@danksouls132 6 жыл бұрын

I have a quiz tomorrow on this. I learned nothing from the text book and class. You saved me.

@Edspira 6 жыл бұрын

Fantastic! I'm glad you learned the material for your exam.

@loganhu2623 8 жыл бұрын

life savior right there 👌👌👌

@theresa78201 9 жыл бұрын

Thank you!

@damilareobadimu1272 5 жыл бұрын

Wish i could swap you with my university lecturers. Very well explained. Thank you

@thisisstevet 3 жыл бұрын

Thank you for the video, much obliged for the explanation

@jhuntijoymiraclebuizon8837 5 жыл бұрын

Thank you so much. It helps a lot! God bless

@Edspira 5 жыл бұрын

I'm happy to help!

@chunpoyang1302 8 жыл бұрын

I love this.

@haveanotherpinacolada 5 жыл бұрын

Thanks! FINALLY! I get it.

@hounddog00 Жыл бұрын

Thanks for this great video!

@cariivm1948 6 жыл бұрын

awesome videos!!! clear & good examples! thanks a lot!! gonna nail the exam (y)

@Edspira 6 жыл бұрын

Carii, I actually have an entire course on managerial accounting on my website (free-of-charge) in the event that you need any additional help. edspira.com/courses/managerial-accounting Thanks for watching and good luck on your exam!

@cariivm1948 6 жыл бұрын

Edspira so lovely! Thank you!!!

@AmirulAriffinn 8 жыл бұрын

can this be used in ACCA studies or is this a different standard?

@despinasibley8379 3 жыл бұрын

Great explanation, thank you!

@Edspira 3 жыл бұрын

Glad it was helpful!

@Diskdrive000 7 жыл бұрын

man all the popcorn experts are gonna go crazy over these numbers lol, all seriousness great vid extremely helpful l, thorough and clear throughout the vid

@storiesmadeeasy4629 7 жыл бұрын

Perfect , thanks alot .

@demo_shit3588 6 жыл бұрын

I have an exam in 2 days, you saved my life

@kathy339 4 жыл бұрын

My instructor tried explaining everything to us but classroom lectures isn't just my thing so yeah thanks for uploading this

@tonygutierrez5779 5 жыл бұрын

My teacher is very inconsistent with the terms and does not explain well, thank you you helped out a lot

@luvjj520 8 жыл бұрын

thank you!

@doomcloud3164 6 жыл бұрын

Wow, this is great! Thanks so much!

@Edspira 6 жыл бұрын

You're welcome. I'm happy to help!

@johnbouquet685 3 жыл бұрын

this is amazing. thank you!

@Edspira 3 жыл бұрын

Glad you like it!

@simonbiliyock8345 5 жыл бұрын

Thanks for this

@peertje3078 4 жыл бұрын

Oh.. shoot :) even Edspira is a human sometimes! But your explanations are out of this world! Thank you.

@wengcheong525 6 жыл бұрын

Thanks a lot!! u just save my examination later!

@Edspira 6 жыл бұрын

Great! I'm happy to help.

@hjwchristina 6 жыл бұрын

Is there a OH variance video available by chance?

@brendaj1265 8 жыл бұрын

Thank you very much! :)

@nicholaswalrod1214 Жыл бұрын

easy explanation thanks

@Edspira Жыл бұрын

Glad it helped!

@gamingwithkev8208 4 жыл бұрын

I definitely need to check out my text book and a few slides because I don't even know where to begin here yet..

@jacinta3203 4 жыл бұрын

Thank you.

@matthaios4357 8 жыл бұрын

Good video but many people will get confused if a variance is favorable or unfavorable. If you subtract standard - actual, you'll always find if it is favorable or unfavorable. For example, the Quantity Variance, if you rearrange the formula of SP x (AQ - SQ) to SP x (SQ - AQ), you'll always know whether it's favorable or unfavorable, unfavorable being a negative number of course. I'm taking my CPA exam on Friday, and this is a trick I use.

@ashleysanfino8221 7 жыл бұрын

Really? I disagree. I think he explains it in a way that actually shows WHY it's favorable or unfavorable, rather than just another formula. Because the actual price is lower than the standard price, it's favorable. Rather than x-y=favorable/unfavorable. That's why I love his videos so much, because the formulas are of little importance when you actually understand the concept. He's a brilliant teacher!

@cl8wnm5n 4 жыл бұрын

You’re an inspiration

@Edspira 4 жыл бұрын

Thank you my friend!

@cl8wnm5n 4 жыл бұрын

Edspira I’m an accounting major myself and I tutor both financial and managerial accounting myself. I wouldn’t be this passionate about accounting if it wasn’t for you. Thank you

@austinkenyonmusic Жыл бұрын

A godsend for real bro

@shantaliesandra9743 4 жыл бұрын

Do we put units on de variances

@laoiyah 6 жыл бұрын

Wish I found this sooner! Studying for my CMA, and the gleim study materials are confusing as hell on this Unit. Thank you!

@Edspira 6 жыл бұрын

Thanks Iaoiyah. Good luck on the CMA exam!

@africarib 6 жыл бұрын

I'm studying too and these videos are making it so much easier. when are you planning on sitting?

@DineshSharma-eb1ch 7 жыл бұрын

Thank You!!!!!

@alextherocker97 7 жыл бұрын

amazing love u man

@alextherocker97 7 жыл бұрын

thanks x

@oliviavilleneuve7520 5 жыл бұрын

Could I give this a gold star instead of just one like?

@fitnnut9015 6 ай бұрын

okay but i am confused that we did not we calculate quantity variance on Actual price?

@samuelkwon5824 6 жыл бұрын

Is this essentially overhead variance analysis?

@blueskythinking8312 4 жыл бұрын

I didnt know that there was such an amazing story behind EdSpira. You really motivate me. I'm someone who wallows in depression and self-pity if I am having a bad day. Have loads to learn from u.

@tsaikat 4 жыл бұрын

my teacher was calculating sales margin volume variance = change in volume * contribution margin (instead of sales revenues). do you know why? is he wrong?

@reneefongg 4 жыл бұрын

Because in variable costing, we implement contribution margin =Sales Variance Quantity = (Standard/ Budgeted Volume - Actual Sales Volume) X Standard Contribution Margin/ Price

@armahkanneh851 2 жыл бұрын

thanks but am still wondering how you got your answer, this is mine answer i got in the total variance,1000-1237.50 should be equal to $237.50 now 1000+237.50 is now $1237.50