operational variance

How Do You Calculate Operating Variance?

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How Do You Calculate Operating Variance? To calculate the quantity variance, we multiply both the expected quantity (EQ) and the actual quantity (AQ) times the standard price (SP), which gives us $950,910 and $956,498, respectively. By taking the differ- ence between these two figures, we get Bob’s Steel Quan- tity Variance: $5,588 unfavorable. What is

What Is Operational Variance?

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What Is Operational Variance? Operational variances (or operating variance) Are variances which have been caused by adverse or favourable operational performance, compared with a standard which has been revised in hindsight. An operational variance compares an actual result with the revised standard. What are the two types of variances? When actual results are better than