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Note
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Reference no. 9-117-006
Published by: Harvard Business Publishing
Originally published in: 2016
Version: 16 March 2022
Revision date: 1-Apr-2022
Length: 12 pages
Data source: Published sources
Topics: Cost accounting

Abstract

The Cost Variance Analysis note was written to provide students with fundamental concepts and methods for the analysis of cost variances. This note focuses on the decomposition of cost variances into price, quantity and mix variance components, an approach that allows students to identify the root causes of differences between expected and actual costs.

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Abstract

The Cost Variance Analysis note was written to provide students with fundamental concepts and methods for the analysis of cost variances. This note focuses on the decomposition of cost variances into price, quantity and mix variance components, an approach that allows students to identify the root causes of differences between expected and actual costs.

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