User talk:James Plasse/sandbox

Meat Price Variance: The meat price variance is the materials price variance for our purchased meat and it is computed by taking the difference between actual and standard price (AP-SP) and multiplying this difference by the actual quantity purchased: MPV = (AP-SP) * AQ Purchased If actual price is higher than standard, an unfavorable variance exists. If the reverse were true, a favorable variance would exist. Unfavorable materials price variance means that the purchasing employee paid more per unit for material than the price allowed by the standard. However, given the market price fluctuations on this commodity, the variance is not 100 percent controllable but subject to market.

Possible Explanations: o	Market price fluctuations o	Failure to buy in sufficient quantities to get normal discounts o	Purchase of higher quality material than called for in the product specs o	Failure to place material orders on a timely basis o	Failure to bargain for better prices

James M Plasse