What are reasons for an adverse material price variance?
- Using higher quality material and therefore more expensive.
- Switching to new suppliers who charge more
- Losing bulk discounts expected from suppliers
- Market conditions such as inflation affecting prices. - A badly set standard where we underestimat
1 of 5
What are reasons for an adverse material price variance?
- Using lower quality materials which generates more wastage.
- Employing lower skilled staff.
- Reduced training
- Using old and unreliable machinery
- A badly set budget where we under- estimated the amount of material required.
2 of 5
What is the formula for Net Assets?
Net Profit/Net Assets x 100
3 of 5
What is the formula for Average Inventory holding period?
Closing Inventroy/ Cost of sales x 365
4 of 5
What is the formula for Inventory Turnover?
Cost of Sales/ Inventory
5 of 5
Other cards in this set
Card 2
Front
What are reasons for an adverse material price variance?
Back
- Using lower quality materials which generates more wastage.
- Employing lower skilled staff.
- Reduced training
- Using old and unreliable machinery
- A badly set budget where we under- estimated the amount of material required.
Card 3
Front
What is the formula for Net Assets?
Back
Card 4
Front
What is the formula for Average Inventory holding period?
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