The material cost variance rate is completely incomprehensible

Material Cost Variance Actual Cost Planned cost.

Actual Cost Planned cost 0, overrun (positive), debit of the Material Cost Variance account.

Actual Costs Planned cost 0, savings (negative), credit of the Material Cost Variance account.

Material Cost Variance Rate (Cost Variance for Opening Balance Materials Material Cost Variance for Current Revenue Materials) (Planned Cost for Opening Balance Materials Planned Cost for Current Revenue Materials) 100%.

Example 1] The planned cost of material B in the early October 2008 balance of an enterprise is 100,000 yuan, the number of the beginning of the material cost difference is 1,500 yuan (overrun), the planned cost of the income B material is 150,000 yuan, the material cost difference is 4,750 yuan (overrun), and the planned cost of the B material issued this month is 80,000 yuan.

Material cost variance rate (1500 4750) (100000 150000) 100%.

The difference in the cost of issuing materials is 80,000 yuan).

The actual cost of materials issued is 80000 2000 82000 (yuan).

The actual cost of materials at the end of the period (100000 1500) (150000 4750) 82000 174250 (yuan).

Example 2] The planned cost of the balance of raw materials is 230,000 yuan, the opening credit balance of the material cost difference is 400 yuan, the planned cost of the income materials in the current period is 345,000 yuan, and the actual cost is 350,000 yuan; The planned cost of the materials issued in this period is 450,000 yuan.

Material cost variance rate 400 (350000 345000) 230000 345000) 100%.

The difference in the cost of issuing materials is 450,000 yuan).

The actual cost of materials issued is 450000 3600 453600 (yuan).

The actual cost of materials at the end of the period (230000 400) 350000 453600 126000 (yuan).

The material cost variance rate is the ratio of the material cost variance to the planned material cost, and the material cost variance is the difference between the actual cost of the material and the planned cost. A positive number indicates the overrun differential rate, and a negative number indicates the savings differential rate.

Material cost variance rate = (opening material cost variance + current month warehousing cost variance) (opening raw material planned cost + current month warehousing material planned cost) 100%.

In fact, it is the (actual-plan) plan, and the actual and planned here include the balance of the previous month and the occurrence of this month.

Material cost variance rate = amount more (or less) than the original plan original plan amount, when over, the material cost variance rate is positive; It is negative when it is less.

The material cost difference rate is also known as the "material cost difference distribution rate of stuffy sheds".

Refers to the ratio of the material cost variance to the material plan cost. It is calculated as follows: Material Cost Variance Allocation Rate (Balance Material Cost Variance at Beginning of Month Revenue Material Cost Variance) (Planned Cost of Balance Material at Beginning of Month Planned Cost of Revenue Material Plan) 100%.

Definitions

The material cost variance is the difference between the actual cost of the material and the planned cost. A positive number indicates the overrun differential rate, and a negative number indicates the savings differential rate.

Formula

It is calculated as follows:

Material Cost Variance Rate (Beginning Material Cost Variance Inbound Cost Variance) (Beginning Raw Material Planned Cost Inbound Material Planned Cost) 100%.

In practice, the calculation of the material cost variance rate is completed by compiling the "Material Cost Variance Calculation Noise Table".

Material Cost Variance Rate Cost Variance for Materials Deposited at the Beginning of the Month Planned cost for materials held at the beginning of the month x 100%.

Cost Variance to be Borne by Issued Materials Planned cost of issued materials x Material Cost Variance Rate.

Actual cost of issued material Planned cost of issued material Variance in the cost of issued material.

The actual cost of the material in balance (the planned cost of the material in the balance at the beginning of the month + the planned cost of the additional material – the planned cost of the issued material) x (1 + the material cost variance rate).

Material Cost Variance Rate:

The material cost variance rate is the ratio of the material cost variance amount to the material planned cost, which is usually expressed as a percentage.

The concept of the material cost variance rate:

The material cost variance rate refers to the ratio of the material cost variance to the material planned cost. If the material cost difference rate is positive, it indicates that the cost of material preparation of the enterprise has been overrun. A negative material cost variance rate indicates that the company's material cost savings have been differentiated.

The formula for calculating the material cost variance rate:

Material cost variance rate = (opening material cost variance + current month warehousing cost variance) (opening raw material planned cost + current month warehousing material planned cost) 100%.

Practical Application of Material Cost Variances:

1. Measurement accounting calculation accuracy: once the cost difference rate can measure the calculation accuracy of cost accounting, you can compare the difference rate between this month and the previous month, if the fruit of the Liang has decreased, it means that the improvement of the calculation method of this month has been effective, then you can improve it accordingly, until the cost budget system of the enterprise is perfected.

Second, save cost procurement costs: the cost difference rate is too large, or the accounting adopts the correct budget method or there is a large difference rate, it means that there is a problem in a certain link in the procurement, the cost difference rate can find whether the problem appears in the procurement link, and then manually review, so as to fundamentally solve the problem of enterprise procurement costs.

The material cost variance rate refers to the ratio of the material mining cost variance to the material planned cost, which is usually expressed as a percentage.

The calculation of the bus model balance is as follows:

Material cost variance rate = (opening material cost variance + current month warehousing cost variance) (opening raw material planned cost + current month warehousing material planned cost) 100%.

In practice, the calculation of the material cost variance rate is done by compiling the "Material Cost Variance Calculation Table".

Last Month's Material Cost Variance Rate = Cost Variance for Materials Deposited at the Beginning of the Month Planned cost of materials held at the beginning of the month x 100%.

The variance of the cost to be borne by the material issued this month = the planned cost of the material issued this month x the material cost variance rate.

The actual cost of materials issued this month = the planned cost of materials issued this month The difference in the cost that should be borne by materials issued this month.

Actual cost of materials held in this month = (planned cost of materials held at the beginning of the month + planned cost of materials added this month - planned cost of materials issued this month) x (1 + material cost variance rate).

The material cost variance rate refers to the ratio of the material cost variance to the material planned cost, and its calculation formula is: material cost variance distribution rate = (material cost difference at the beginning of the month + material cost variance in revenue) (material plan cost at the beginning of the month + pure chain orange plan cost of revenue materials) * 100%. A positive material cost variance rate indicates an overrun variance rate, and a negative number indicates a savings variance rate.

Data development. If the material cost variance rate is positive, it means that the company's material cost has been overrun. If the material cost difference rate is negative, it indicates that the material cost of the enterprise has a difference in savings. In practice, the calculation of the material cost variance rate is done by compiling the "Material Cost Variance Calculation Table".

Material Cost Variance Rate Cost Variance for Materials Deposited at the Beginning of the Month Planned cost for materials held at the beginning of the month x 100%.

The cost of materials is the cost of acquiring materials. That is, all expenses incurred to obtain materials. The main ways to obtain materials are procurement, self-production, and entrusted external processing.

The cost of purchased materials generally includes the purchase price, transportation costs, reasonable wear and tear during transportation, and sorting and selection costs before warehousing.

In order to simplify the accounting, for the travel expenses of procurement personnel, the expenses of special procurement agencies, transportation costs in the city, and the expenses of the first department and warehouse of the enterprise (including the cost of sorting and selecting materials after warehousing) can be listed as enterprise management expenses and are not included in the cost of material procurement.

1. Calculate the difference between the actual cost of various materials and the planned cost of the enterprise.

Enterprises can set up this account separately according to the specific situation; You can also set up a detailed account for cost variance in accounts such as "Raw Materials", "Packaging, and Low-value Consumables".

2. "Raw materials", "packaging materials and low-value consumables", etc., shall be accounted for in detail according to the category or variety.

3. The planned cost of materials should be consistent with its actual cost, and the planned cost should be as close to the actual as possible. Except in exceptional circumstances, the cost of the program generally does not change during the year.

The difference in the cost to be borne by the issued materials shall be apportioned on a monthly basis and shall not be calculated at the end of the quarter or at the end of the year. The actual difference rate of the current month should be used for the cost difference to be borne by the issued materials, except for the cost difference rate at the beginning of the month, which can be calculated according to the cost difference rate at the beginning of the month. If there is no significant difference between the cost variance rate at the beginning of the month and the cost variance rate of the current month, it can also be calculated based on the cost variance rate at the beginning of the month. Once the calculation method is determined, it shall not be changed at will.

The formula for calculating the material cost variance rate is as follows:

Variance rate of material cost for this month = (cost variance of materials held at the beginning of the month + cost variance of materials earned this month) (planned cost of materials held at the beginning of the month + planned cost of materials received this month) 100%.

Material Cost Variance Rate at Beginning of the Month = Cost Variance for Materials Balance at the Beginning of the Month 100% of the planned cost of materials at the beginning of the month

Cost variance to be borne by issued material = planned cost of issued material Material cost variance rate.

Fourth, the main accounting treatment of material cost differences.

1) The difference in the material cost of the warehousing materials, the difference between the actual cost and the planned cost, debit this account and credit the "material procurement" account; The difference between the actual cost and the planned cost is reversed. When adjusting the planned cost of materials, the amount of the adjustment should be transferred from the account "Raw Materials" and other accounts to this account: the amount of the adjustment to reduce the planned cost shall be debited to the purpose of this section; Adjust the amount of the increase in the cost of the program and credit it to the purpose of this section.

2) The difference in the cost of materials that should be borne by the materials shall be debited from the accounts of "production costs", "management expenses", "sales expenses", "entrusted processing materials", "other business expenses", etc., and credited to this account; The difference between the actual cost and the planned cost is reversed.

5. The debit balance at the end of the account reflects the difference between the actual cost of raw materials in the inventory of the enterprise and the planned cost; The credit balance reflects the difference between the actual cost of the business's inventory, raw materials, etc., being less than the planned cost.