The price variance (Vmp) of a material is computed as follows: When the Actual Materials Price is higher than the Standard Materials Price, the variance is said to be unfavorable, since the Actual price paid on materials purchased is greater than the allowed standard. The variance is said to be favorable when the Standard materials Price is higher...
Found on
http://en.wikipedia.org/wiki/Price_variance
A price variance is the difference between the actual revenue or cost and the budgeted revenue or cost because of a difference between the actual unit price and the budgeted unit price. In other words, it?s the difference between the amount management expected to profit from a sale and the amount they actually profited because of a change in unit p...
Found on
https://www.myaccountingcourse.com/accounting-dictionary/accounting-diction
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