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Variance Analysis
The process of analyzing the difference between planned and actual numbers in order to find discrepancies and their causes.
Formula Approach
A method that uses mathematical formulas to solve problems or make decisions.
Materials Price Variance
A measure of the difference between the actual cost of materials and the standard cost, used to assess purchasing efficiency.
Standard Price
The predetermined cost at which goods or services should be purchased or sold, often used as a benchmark for evaluating actual costs.
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