Price variance vs efficiency variance

[@konstancyja82]

You have an incredible way of explaining complicated topics in really easy way , with great visuals! All universities shall invite you as a guest speaker ... not even mentioning a companies !

[@TheFinanceStoryteller]

Thank you very much! Spent quite a bit of time putting this together, but I am happy with the end result.

[@jedski5956]

This is mindblowing. Now I don’t have to memorize why we use SP on Quantity Variance and AQ on Price Variance. Thanks you The Finance Storyteller.

[@TheFinanceStoryteller]

I am so happy to hear that! Yes, it's great to understand the concepts, rather than just memorize the formulas. :-)

[@mumud8297]

Thanks!

[@mumud8297]

Thank you. This helped me fix my waterfall chart. Appreciate your hard work and dedication!

[@TheFinanceStoryteller]

Happy to help!!!

[@theboombody]

Man, I can tell you put a lot of time into this.

[@TheFinanceStoryteller]

Yeah, this took a while to put together. Was it worth it? ;-)

[@sylvanusngoya2881]

Your are explaining very well I was asking my self, that why we use SP and why not actual price but now I have got the answer why we use SP instead of AP big up you are good instructor

[@TheFinanceStoryteller]

Thank you, Sylvanus! Yes, when you draw this out in a diagram and review the formulas, it starts to make a lot more sense! :-)

[@AdityaGupta-gr8ds]

And can you explain here please!

[@chythranharold448]

can you explain

[@grzegorzgielniak9309]

Hello I found your channel yesterday. Thank you very much for your work. It is very helpful in my job and easy to understand.

[@TheFinanceStoryteller]

Hello Grzegorz! Welcome to the channel! Thanks for the compliments. Enjoy the videos (and the review/quiz questions on the Community tab!).

[@johnelmerclabita4740]

I know this has been uploaded years ago but thank you! 🙏🏼

[@TheFinanceStoryteller]

You're very welcome, John! I enjoyed making the video, it hasn't received the number of views that it should (yet).

[@sylvanusngoya2881]

You are good instructor

[@TheFinanceStoryteller]

Thank you very much! Enjoy the videos on my channel!

[@princejag]

Logically explained.

[@TheFinanceStoryteller]

Thank you, Jagadeesh! Yes, this is a topic where clear logical thinking helps!

[@AnhTuan-fv2kn]

great video 😍😍😍

[@TheFinanceStoryteller]

Thank you 🤗

[@sreejithm7699]

why using SP*AQ to differentiate price variance and quantity variance instead of AP*SQ. is there any specific reason?

[@TheFinanceStoryteller]

AQ is leading in a standard costing environment. How much did I actually use versus what I was supposed to use. Efficiency variances (using more or fewer units) are driven by manufacturing. Only then do we consider price variances (driven by sourcing).

[@sreejithm7699]

@@TheFinanceStoryteller thank you

[@TheFinanceStoryteller]

Happy to help!!!