Standard Costs and Variance Analysis

[@ashleysanfino8221]

Why can't professors explain it this eloquently? This topic was giving me such a massive headache until I saw this video. You actually explain it, rather than just telling me to memorize a formula. Thank you! You're a godsend!

[@ashleysanfino8221]

Also, where are you from? I've been trying to pin your accent but can't figure it out. Chicago transplant maybe?

[@Edspira]

No problem, I'm glad you were able to understand it. And thank you for the kind words!

[@Edspira]

You are correct! I grew up around the south side of Chicago. It's funny, people always ask me if I'm from Minnesota, Canada, etc. but no one ever guesses Chicago.

[@whatthefaddy97]

agreed

[@dankuthegreatone2348]

i am doing this topic now and the notes and lecture made no mention of how to calculate standard quantity, very glad for this video made from 2014

[@reneefongg]

I tell you what, all your videos save my degree, from Corporate Finance to Management Accounting, I have no idea what my lecturers are talking, You are a life saver!

[@iceesky]

i didnt want to listen to my prof's 2 hour lecture of this topic and just end up being more confused, so your vids are incredibly helpful!! and like that you also explain why this is important in real life so I'm really appreciating this topic even more as a bus ad student

[@ilazer6058]

These videos have been very helpful to me when studying for my managerial accounting final. I'm using the Horngren textbook in class and these videos are so well matched with the material in the textbook. Thank you for making these!

[@allyu2305]

Thank you so much, this video is awesome! I got a 95 on my first intermediate exam and 92 on the first cost exams, and most of my success came from watching your explanations. Would it be possible to make some videos on overhead variances?

[@canestim]

Honestly, best teacher I've ever had, thank you for what you do.

[@gordonharkness2709]

The std quantity figure is always the wild card on where the calculations go wrong, this explains this rationale clearly. Thanks for that!!

[@edvan3407]

Thanks Bro. You saved my college life. You are my standard and actual hero!

[@jenns4757]

Your videos helped me get an A in my managerial accounting class! THANK YOU!! ❤

[@Edspira]

Congratulations on acing the course!

[@praisecherenitembo6570]

This video helped me pass my exam. I was way behind but you made me understand standard costing in a day. Thank you.

[@susanrodriguez9438]

I'm so glad this channel exists

[@Edspira]

Happy to help!

[@stevemann120]

Upon graduation I am dedicating my degree to you sir! You made it possible!

[@Categoricalimperative123]

These videos are oversimplifying important concepts be careful

[@matthewaniol7]

Im currently doing my CPA and i watch all your videos. You make everything so easy to understand. Thanks a lot!

[@Edspira]

Happy to help my friend. I hope you pass the CPA, good luck!

[@devinhsu1305]

I am studying for my CPA and this video helps so much. You are truly amazing!

[@GGallion7]

You made the material easy to understand, thank you.

[@Edspira]

No problem! Best wishes :)

[@brianbashala6884]

I found this channel 2 days before my final exam and it helped so much you're the goat edspira thanks!!

[@doomcloud3164]

I spent 3 hours reading this one chapter.. and this has clarified everything! Thank you!

[@Edspira]

Great...I'm glad this video helped you!

[@doomcloud3164]

Edspira I forwarded this video to my classmates to view before they tackled the assignment. Got positive reviews back. Thank you again!

[@barnabasretta1600]

You are the best accounting teacher I have seen!!

[@LifeisBeyondBeautiful]

Thank you for your lecture video. This is great! You made standard cost and variance analysis easy to understand. I am currently reviewing my knowledge regarding the topic for Philippine CPA Board Examinations. You've been very helpful. You’re great. You’re the best. God bless you. :)

[@Edspira]

Thank you for the kind words. I hope you pass your exam and go on to have a successful and happy career! Best wishes

[@maryroseevangelista4870]

I wish you could make more easy to understand videos like this. It’s one way of showing your unselfish concern to all accounting as well as non accounting students. Thank you !

[@sinethembasithebe3389]

God bless the work you do! You truly are a blessing😭😭😭😭😭

[@Edspira]

Thank you!

[@candy15861]

This channel just saved my school life

[@JC-st6fi]

Great video, clear and easy to understand. I learned all this in cost accounting awhile back but this was a much more concise explanation.

[@Edspira]

Happy to help!

[@32459]

Thank you for explaining this concept in such an intuitive, logical way!! First looking on the lecture slides I thought this must be super complicated, but it is actually simple if one can explain it well. Much appreciated!!

[@Edspira]

No problem, accounting can be intimidating sometimes. I'm glad the video helped make standard costing and variances easier to understand!

[@ivanaleksandrov5475]

Thank you so much for all the videos connected with Management Accounting. You have helped me a lot!

[@Edspira]

It's my pleasure! Best wishes

[@clabelle244]

Do you have videos for variable manufacturing overhead variance and fixed manufacturing overhead variances?

[@iiv_dannybo1]

Thanks so much. I fully understand it now . I have an exam next week

[@notrosyenough]

I'm using your videos to study for my final and I'm a little upset I didn't find you sooner! You explain the material so well!! Thank you so much, maybe now I will get an A on my exam!!

[@Ultimatum12345678910]

You're a wonderful teacher, thank you so very much for your video. You really made this concept seem much more straightforward than how it was presented in my lectures.

[@danksouls132]

I have a quiz tomorrow on this. I learned nothing from the text book and class. You saved me.

[@Edspira]

Fantastic! I'm glad you learned the material for your exam.

[@sumit6567]

You explained it so nicely that I forgot what I crammed!! Today is my final year exam of B.com (H) in India, and this helped a lot!! Thank you.

[@nacharles2013]

Thank you so very much for the time you spent to make this video.It was excellent and I now understand this topic.Keep up the great work!

[@lindahenry9334]

Thank you. You explained how to analyse variances superbly.

[@asharamir7463]

Your the reason I'm passing accounting, Thanks man !!!

[@Edspira]

+Ashar Amir Thank you for the kind words-- but let me say that you are the one putting in the extra study hours to learn the concept, so all the credit goes to you! Have a great winter break :)

[@louismorgner]

Great quality content. Love the way you break down the different concepts while allowing the viewer to follow along.

[@blueskythinking8312]

I didnt know that there was such an amazing story behind EdSpira. You really motivate me. I'm someone who wallows in depression and self-pity if I am having a bad day. Have loads to learn from u.

[@_R0RY]

Brilliant video, summed up about 50 pages of my text book in 16 mins! Thank you for putting in the time to produce the vids on your channel.

[@liamsanders1502]

Truly a godsend, thank you for all the work you put into making these videos

[@vineetvaishnav]

Where can I donate my First born? This is a life saver. Can we more videos on working capital management ?

[@ninanguyen3401]

Thank you for this great explanation on budgeting and variance, it's very helpful

[@kathy339]

My instructor tried explaining everything to us but classroom lectures isn't just my thing so yeah thanks for uploading this

[@tonygutierrez5779]

My teacher is very inconsistent with the terms and does not explain well, thank you you helped out a lot

[@khumalosthabisobongumusa6833]

may god bless this man

[@bennaylor3674]

This channel has literally saved my ass for two different tests

[@toolplanner]

Good stuff. Straight forward presentation and easy to understand.

[@antaraanika4481]

You make things so easy to understand. Hands down the best! You should upload more in youtube though

[@Edspira]

Thanks Antara! I'm working on more videos :)

[@demo_shit3588]

I have an exam in 2 days, you saved my life

[@pantsharad]

Thanks for making topic simple, at the end I truly understand it.

[@ellierd6996]

always by our side! thank u

[@matthaios4357]

Good video but many people will get confused if a variance is favorable or unfavorable. If you subtract standard - actual, you'll always find if it is favorable or unfavorable. For example, the Quantity Variance, if you rearrange the formula of SP x (AQ - SQ) to SP x (SQ - AQ), you'll always know whether it's favorable or unfavorable, unfavorable being a negative number of course. I'm taking my CPA exam on Friday, and this is a trick I use.

[@ashleysanfino8221]

Really? I disagree. I think he explains it in a way that actually shows WHY it's favorable or unfavorable, rather than just another formula. Because the actual price is lower than the standard price, it's favorable. Rather than x-y=favorable/unfavorable. That's why I love his videos so much, because the formulas are of little importance when you actually understand the concept. He's a brilliant teacher!

[@tiffanytipton7820]

Thank you so much! This was extremely helpful...you have no idea! Please keep up the good work!

[@damilareobadimu1272]

Wish i could swap you with my university lecturers. Very well explained. Thank you

[@peertje3078]

Oh.. shoot :) even Edspira is a human sometimes! But your explanations are out of this world! Thank you.

[@DaisyNgobeni]

You made this very easy for me to understand,and it really makes perfect sense,thank you:)

[@Edspira]

Awesome. Best of luck to you!

[@rdsmuts2313]

Thank you for your videos. They really help me understand this subject.

[@Edspira]

No problem. Take care!

[@oliviavilleneuve7520]

Could I give this a gold star instead of just one like?

[@cl8wnm5n]

You’re an inspiration

[@Edspira]

Thank you my friend!

[@cl8wnm5n]

Edspira I’m an accounting major myself and I tutor both financial and managerial accounting myself. I wouldn’t be this passionate about accounting if it wasn’t for you. Thank you

[@laoiyah]

Wish I found this sooner! Studying for my CMA, and the gleim study materials are confusing as hell on this Unit. Thank you!

[@Edspira]

Thanks Iaoiyah. Good luck on the CMA exam!

[@africarib]

I'm studying too and these videos are making it so much easier. when are you planning on sitting?

[@despinasibley8379]

Great explanation, thank you!

[@Edspira]

Glad it was helpful!

[@sgAKAchina]

You are a very good teacher thank you very much!

[@Diskdrive000]

man all the popcorn experts are gonna go crazy over these numbers lol, all seriousness great vid extremely helpful l, thorough and clear throughout the vid

[@joubaw5329]

Thank you very much for this video! I do have request though, would you mind making a video on material mix and yield variances somewhere in the near future ? Keep up the good work! I can testify through experience about the value being added, through this channel, to the management accounting student community.

[@Edspira]

Thanks Wilhelm. I'll definitely consider your request when I'm making more videos this summer. Best of luck to you!

[@loganhu2623]

life savior right there 👌👌👌

[@joeturk8159]

“There’s a problem with the popcorn market” lol

[@cariivm1948]

awesome videos!!! clear & good examples! thanks a lot!! gonna nail the exam (y)

[@Edspira]

Carii, I actually have an entire course on managerial accounting on my website (free-of-charge) in the event that you need any additional help. edspira.com/courses/managerial-accounting Thanks for watching and good luck on your exam!

[@cariivm1948]

Edspira so lovely! Thank you!!!

[@GMATARO]

I wish you were my instructor! Thank you so much.

[@zippy2u]

Thank you so much for clarifying this process for me.

[@allanshen9543]

adderall + this video = me passing my cost acc class thank you so much youre actually the goat

[@thisisstevet]

Thank you for the video, much obliged for the explanation

[@whoisaustinn]

A godsend for real bro

[@DaoWoW]

Hi Michael. This was really informative. In regards to the quantity variance, what if we had a standard quantity of 850 lbs budgeted? would we then use that number instead of the 825lbs (SQ @ Actual x SP)?

[@johnbouquet685]

this is amazing. thank you!

[@Edspira]

Glad you like it!

[@simonribas4625]

Hey EDSPIRA great videos. I recommend doing an example where you buy more popcorn than you used in production which would change how much is used in the middle column of your analysis. This gives lots of students the real trouble since they get confused about comparing the prices and quantity USED to make the popcorn/whatever.

[@kemotraore4801]

Thank u for showing me how to solve any questions for Variances we need more examples I appreciate it

[@wengcheong525]

Thanks a lot!! u just save my examination later!

[@Edspira]

Great! I'm happy to help.

[@hunterhalvorson6223]

had to miss my lecture this was clutch

[@nicholaswalrod1214]

easy explanation thanks

[@Edspira]

Glad it helped!

[@AZB2000]

Edspira is a hero of socialist labour

[@Edspira]

😂

[@gamingwithkev8208]

I definitely need to check out my text book and a few slides because I don't even know where to begin here yet..

[@andriipidstrela1251]

Wow that is really cool! Thank you, i hope you have here Job-Order costing and profit planning also. Amazing channel

[@doomcloud3164]

Wow, this is great! Thanks so much!

[@Edspira]

You're welcome. I'm happy to help!

[@tsaikat]

my teacher was calculating sales margin volume variance = change in volume * contribution margin (instead of sales revenues). do you know why? is he wrong?

[@reneefongg]

Because in variable costing, we implement contribution margin =Sales Variance Quantity = (Standard/ Budgeted Volume - Actual Sales Volume) X Standard Contribution Margin/ Price

[@NinaMennen]

First of all, thanks a lot for your video; it makes a lot of sense. However, why is the price variance not favorable and the quantity variance not unfavorable?

[@jhuntijoymiraclebuizon8837]

Thank you so much. It helps a lot! God bless

[@Edspira]

I'm happy to help!

[@dulcemy14195]

THANK YOU so much for make my life easier.

[@taurus32_23]

Thanks a ton.Really great stuff :)

[@Edspira]

Tomis Alex No problem! Thank you for the kind words!!

[@chunpoyang1302]

I love this.

[@hjwchristina]

Is there a OH variance video available by chance?

[@fitnnut9015]

okay but i am confused that we did not we calculate quantity variance on Actual price?

[@yummyjackalmeat]

Thanks, I work in ecommerce and trying to figure out WTF is going on with my inventory.

[@armahkanneh851]

thanks but am still wondering how you got your answer, this is mine answer i got in the total variance,1000-1237.50 should be equal to $237.50 now 1000+237.50 is now $1237.50

[@failuressoul1033]

good channel💞

[@shantaliesandra9743]

Do we put units on de variances

[@AmirulAriffinn]

can this be used in ACCA studies or is this a different standard?

[@tab3791]

thank you very much, it helped me a lot...

[@samuelkwon5824]

Is this essentially overhead variance analysis?

[@simonbiliyock8345]

Thanks for this

[@Helwafafy]

I don't understand why 37.50 is favorable can someone explain to me?

[@theresa78201]

Thank you!

[@jacinta3203]

Thank you.