dc.contributor.author |
Bradshaw, John |
|
dc.contributor.author |
Keef, Stephen |
|
dc.contributor.author |
Roush, Melvin |
|
dc.date.accessioned |
2007-11-21T19:28:41Z |
|
dc.date.accessioned |
2022-07-05T02:30:53Z |
|
dc.date.available |
2007-11-21T19:28:41Z |
|
dc.date.available |
2022-07-05T02:30:53Z |
|
dc.date.copyright |
2005 |
|
dc.date.issued |
2005 |
|
dc.identifier.uri |
https://ir.wgtn.ac.nz/handle/123456789/18631 |
|
dc.description.abstract |
The direct material cost variance can be subdivided into a price variance, a quantity
variance and a price-quantity
interaction variance. The price-quantity
interaction variance
is rarely mentioned in the literature because the traditional price variance does not
acknowledge an interaction variance. For a number of pragmatic reasons, this approach
may be justified for the direct material price variance. The direct labor cost variance is
conceptually similar to the direct material cost variance. Accordingly, the traditional
direct labor rate variance also includes a rate-efficiency
interaction variance. However,
the justifications for incorporating the interaction variance into the direct material price
variance do not apply to the direct labor rate variance. This paper explores the possibility
of separating the rate-efficiency
interaction variance from the direct labor rate variance.
This approach may be more aligned with the concept of responsibility accounting than
the traditional method of calculating the direct labor rate variance. Thus, it may provide
more reliable information feedback for decision-making
purposes. |
en_NZ |
dc.format |
pdf |
en_NZ |
dc.language.iso |
en_NZ |
|
dc.publisher |
Te Herenga Waka—Victoria University of Wellington |
en_NZ |
dc.relation.ispartofseries |
No. 27 |
en_NZ |
dc.relation.ispartofseries |
Working Paper |
en_NZ |
dc.subject |
Rate comparison |
en_NZ |
dc.subject |
Performance measurement |
en_NZ |
dc.subject |
Production costs |
en_NZ |
dc.subject |
Labour cost |
en_NZ |
dc.title |
The Pure Rate Variance |
en_NZ |
dc.type |
Text |
en_NZ |
vuwschema.contributor.unit |
Centre for Accounting, Governance and Taxation Research |
en_NZ |
vuwschema.contributor.unit |
School of Accounting and Commercial Law |
en_NZ |
vuwschema.subject.anzsrcfor |
150199 Accounting, Auditing and Accountability not elsewhere classified |
en_NZ |
vuwschema.subject.marsden |
350100 Accounting, Auditing and Accountability |
en_NZ |
vuwschema.type.vuw |
Working or Occasional Paper |
en_NZ |
vuwschema.subject.anzsrcforV2 |
350199 Accounting, auditing and accountability not elsewhere classified |
en_NZ |