Monthly Archives: October 2020

Direct materials quantity variance explanation, formula, reasons, example

To control overhead costs, businesses implement energy-efficient practices, renegotiate lease agreements, or optimize production schedules to reduce idle time. Regular equipment maintenance helps prevent unexpected repair costs that contribute to unfavorable variances. Companies may also use activity-based costing (ABC) to allocate overhead more accurately, ensuring indirect costs are properly accounted for in budgeting and pricing […]