Labour Cost Variance Analysis Through Diagrams - Integration to MIS

Abstract

Variance Analysis (standard costing) is one of the most important and useful topic in Management accountancy. But unfortunately, it has not gained much popularity among the students and professionals as well. The reason for such apathy probably is attributable to the complexity and diversity of the forgettable formulae involved in such analysis. In this article, solution of a comprehensive Labour Cost problem has been demonstrated through innovative diagrams which are in complete harmony with the original formulae. The diagrams are simple, easy to understand and memorize. Moreover the visualization aspect of the diagrammatic representation of variance analysis has the potentiality to step into the arena of a MIS in industries