Direct Materials Variance Analysis

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  • Опубліковано 24 лис 2024

КОМЕНТАРІ • 130

  • @Chostax
    @Chostax 8 років тому +130

    Better than all my masters-level profs, and my textbooks aren't close to as understandable. YOU THE BEST.

    • @Edspira
      @Edspira  8 років тому +10

      Thank you for the kind words!

  • @sanchitabista37
    @sanchitabista37 День тому

    I don’t have words to put in words for how grateful I am being able to learn from you, thank you so much god bless you!!🙏

  • @sanchitabista37
    @sanchitabista37 День тому

    World’s best accounting teacher👏

  • @bushranahvi2263
    @bushranahvi2263 8 років тому +44

    I literally have my exam tomorrow and covered a considerable portion of syllabus by just going through your videos. Thank you for sharing. You're the best!

  • @Nicholas_Bonato
    @Nicholas_Bonato 2 роки тому +3

    Don’t know why I’m paying so much for someone who teaches this in a way that is impossible to understand. You’re awesome! Thanks so much.

    • @Edspira
      @Edspira  2 роки тому

      I appreciate that!

  • @sebastians2921
    @sebastians2921 8 років тому +10

    I understood everything within minutes! Saved me hours trying to comprehend my textbooks and online lecturer. I have an exam on Tuesday and you sir, are a life saver!

  • @kaseybui158
    @kaseybui158 3 роки тому

    I talked to myself. I will learn 1 video at a time, but now I can’t stop watching your video. It’s interesting like watching favorite movies. Thank you so much.

  • @tenacioustuna4753
    @tenacioustuna4753 5 років тому +2

    I'm sorry but you've managed to make the most complicated lecture I'd ever been through, into the most simple calculation
    THANKS!

  • @CorporatePantsula
    @CorporatePantsula 2 роки тому +1

    How is this content free?!!! Thank you so much. With love from South Africa!! You inspired me to work on becoming an Accountant.

    • @Edspira
      @Edspira  2 роки тому

      I'm so happy to hear that! I hope you have a great career!

  • @johnbouquet685
    @johnbouquet685 3 роки тому +1

    Studying for the CMA exam and you really brought this section home for me. thank you

  • @tuyetmmail
    @tuyetmmail 9 років тому +17

    These videos were helpful. Please don't stop making them.

    • @Edspira
      @Edspira  9 років тому +6

      +tuyet mai Thank you for the kind words! I plan to release some new videos very soon :) Best wishes

  • @alexandraowens667
    @alexandraowens667 3 роки тому +1

    These videos are such a huge resource for me in my accounting courses! I stared at the same problems for hours and watched your videos on variances twice and was able to get it. You explain it so simply.

  • @haremprotagonist3732
    @haremprotagonist3732 Рік тому

    Amazing video. Incredibly comprehensive. It's shocking to see how superior a UA-cam video can be compared to college education.

  • @ngqiqomatandabuzo
    @ngqiqomatandabuzo 2 роки тому

    This man just covered my whole Standard Costing Lecture in less than an hour and 30 minutes that we take 2 weeks to study at my varsity and I have never been confident about standard costing as I have ever been since doing it for the past 4 years. Thank you very much Edspira

  • @ameeraasad747
    @ameeraasad747 2 роки тому +1

    Seriously these videos are saving my CMA exam. Thank you so much!!!

    • @ameeraasad747
      @ameeraasad747 2 роки тому +1

      Also, wish me luck!

    • @Edspira
      @Edspira  2 роки тому +1

      Good luck! I hope you do outstanding!

  • @hankarber7280
    @hankarber7280 4 роки тому

    My Dr. prof repeated the textbook made me feel like I am in nowhere.
    15' clear me up. I am your big FAN. Thank you.

  • @omidalizada4577
    @omidalizada4577 3 роки тому +2

    Thank you sir! You are a good example of what humanity is.

    • @Edspira
      @Edspira  3 роки тому +1

      Wow, thank you!

  • @diljursy1604
    @diljursy1604 7 років тому +3

    I wished I found this earlier, was studying for my exam tomorrow and this is by far the best explanation I have ever heard. YOU ARE AMAZING!

    • @Edspira
      @Edspira  7 років тому

      Thank you for the kind words. I hope you did well on your exam!

  • @kristinebuquiron9727
    @kristinebuquiron9727 3 роки тому +1

    Thank you! I have my CPA exam this week and you just saved me so much time.

  • @nastastiamorales2450
    @nastastiamorales2450 5 років тому +1

    Thank you so much, none of my text books explain this clearly. This is very clear and easy to follow.

  • @supaswaggerz1
    @supaswaggerz1 2 роки тому

    Thank you for getting me through accounting. All of your videos are so informative and understandable. I graduate in 2 days and I cant explain over the years in business school how much they've really helped me. Sincerely, thank you.

  • @aloa6173
    @aloa6173 5 років тому +3

    Man! really thank you for these videos you're making. I'm an MBA student. I watch almost all your fantastic videos & I benefited alooooot of them. I like the rational and logic behind the way you explain concepts. Also, I always recommend your videos to my classmates cuz honestly speaking, for multiple times (if not all the times) your concise explanations are way better than what my respectful professor does in the class. Thank you again.

  • @tatendasithole2471
    @tatendasithole2471 4 роки тому +1

    You're the best teacher I've ever heard🙌🏽

  • @cindywise8777
    @cindywise8777 2 роки тому

    Agreed! WAY better than anything I learned in class or from trying to 'teach' myself from the text. Thank you SO much!

  • @connorbrown318
    @connorbrown318 5 років тому

    Just an FYI these videos helped immensely for my CPA; MY CPA! Thanks man!

  • @shannonblackburn9746
    @shannonblackburn9746 3 роки тому +1

    This video is excellent. Thank you for sharing, you have brilliant teaching skills and so easy to understand. This is helping me more than all my course information put together. Thank you!

    • @Edspira
      @Edspira  3 роки тому

      Thank you for such kind words!

  • @rachelwellman6010
    @rachelwellman6010 4 роки тому

    Thank you for making this so simple! I have watched videos provided by my college and read textbook explanations but was so confused... until this video. Feel like a pro now! :)

  • @NS-tz3nt
    @NS-tz3nt 8 місяців тому

    Thank you for us .. my instructor prefers us to use formulas and I can’t remember them . I prefer this column way you’ve illustrated

  • @alanrussell3739
    @alanrussell3739 2 роки тому

    Nicely presented and explained, and so simple to understand! Thanks for taking the time to produce this video.

  • @daniaahsan4601
    @daniaahsan4601 7 років тому +1

    I wish I would have came across this earlier! I finally understand where I was going wrong. Thanks alot!

  • @TheKatzKidz
    @TheKatzKidz 5 років тому

    Your videos are so EASY to comprehend! Thank you for using laymans terms and real language. At 9:24 I'm beginning to think of the woodchuck chucking wood! (how much wood would we use if we could, would use wood...)

  • @deenathornton8904
    @deenathornton8904 2 роки тому

    Saving lives, one formula at a time!

  • @raindayang635
    @raindayang635 7 років тому

    this is soooooo clear, just get over it in ten minutes...awesome:)

  • @highestversionofmyself1929
    @highestversionofmyself1929 2 роки тому

    YOU ARE AMAZING 🤧🤧🤧 LEARNED A LOT FROM YOU SIR!

  • @miafrancis4580
    @miafrancis4580 3 роки тому +1

    Great sessions... Even college classes were not close to this... Thanks for wonderful work & effort !1

    • @Edspira
      @Edspira  3 роки тому +1

      Glad you like them!

    • @miafrancis4580
      @miafrancis4580 3 роки тому

      @@Edspira Keep up the good work !!

  • @emilialandashikomba8884
    @emilialandashikomba8884 8 років тому

    am from medical background but this make me understand better,thank u

  • @vancouver19941
    @vancouver19941 7 років тому +2

    Thanks this really clarified my instructor's lecture

    • @Edspira
      @Edspira  7 років тому +1

      Excellent!

  • @FC-sr3cl
    @FC-sr3cl 4 роки тому +1

    I just paused the video halfway to say THANK YOU!

    • @Edspira
      @Edspira  4 роки тому +1

      Thank you for the kind words my friend!

  • @chiomao5218
    @chiomao5218 8 років тому +1

    YOU ARE LITERALLY THE BOMB
    THOUGHT ID NEVER UNDERSTAND THIS BEFORE MY EXAM IN 3 DAYS
    LOVE FROM THE UK ;) THANK YOU SOO MUCH

    • @Edspira
      @Edspira  8 років тому

      +Chioma o It was my pleasure. Thank you for the kind words- I'm glad you found the videos useful. I hope you get a great score on your final exam and have a fun-filled summer! Best wishes

  • @Vish23514
    @Vish23514 9 років тому +1

    can't thank you enough the video is great and content specific and to the point!!!

  • @СуровцевИван-г6в
    @СуровцевИван-г6в 5 років тому

    Thanks for your videos. I started watching your channel to improve my English and consider that it's very helpful.
    When I was studying this kind of analysis called chain substitution method. Maybe it's not accurate translation.
    Let me not agree with this video and ask you a question: why do you make calculations with 950? If company produce tables from year to year and they know how much it takes wood to make 1 table (8 pounds) so why did it was bought so much wood?
    I assure if firm specializes in wood manufacturing, they should keep some would in the stock for future orders.
    So if we perform variance analysis, we must analyze current expenses for production for certain period, i.e. how much wood, labor, etc. we spend to 105 tables (875 pounds). Surplus will be used later.
    If we calculate cash flow we use 950.

    • @KARIMSLOVERS
      @KARIMSLOVERS 4 роки тому

      You are absolutely correct! I note this mistake!

  • @cynthiaakiotu9871
    @cynthiaakiotu9871 9 років тому +1

    thanks..very straightforward and understanding.

  • @shafqatshah242
    @shafqatshah242 7 років тому +1

    You have explained the Material Variance very well. Thanks alot for Such a useful video.
    I have a Question. Why Standard Price is used to calculate the Quantity Variance and why actual price is not used?
    Thanks in advance.

    • @Edspira
      @Edspira  7 років тому +4

      The actual price is affected by how good the purchasing manager is at getting a good deal from the supplier. Thus, we use the standard price in this case because we solely want to focus on determining how efficient the company was at using direct materials

    • @shafqatshah242
      @shafqatshah242 7 років тому

      thanks alot for your kind reply.

  • @despinasibley8379
    @despinasibley8379 4 роки тому +1

    You are beyond great, Thank you!

    • @Edspira
      @Edspira  4 роки тому

      Wow, thank you!

  • @samuelkwon5824
    @samuelkwon5824 6 років тому +1

    Better than my CPA review. Lol. Thank you!!!!

  • @riyangeorge8584
    @riyangeorge8584 6 років тому

    Wow this is explained amazingly well. Thankyou!

  • @rob8482
    @rob8482 6 років тому

    Great explination, of a valuable tool. Thanks for your efforts!

  • @gregcates8026
    @gregcates8026 2 роки тому

    Thanks for the clarity

  • @tasbihaliaqat4062
    @tasbihaliaqat4062 6 років тому

    Hi Sir, if we were to calculate the closing inventory value, what price/unit would we use? Standard or Actual?

  • @TheWaveism
    @TheWaveism 6 років тому +1

    Another terrific video. Thank you!!!!

    • @Edspira
      @Edspira  6 років тому

      Thanks Scott!

  • @chlorophyllarafolii5960
    @chlorophyllarafolii5960 4 роки тому

    Thank youuu. Very well explained... 😊

  • @ht8180
    @ht8180 7 років тому

    you saved my life!

  • @lawalibrahim6277
    @lawalibrahim6277 7 років тому

    thanks you helped me get an A

  • @Ty-dc8mc
    @Ty-dc8mc 4 роки тому

    You are absolutely amazing! Thank you so much 😭

  • @raghad1442
    @raghad1442 3 роки тому

    You are a legend

  • @missandea8788
    @missandea8788 4 роки тому

    Hello sir, what if the question give us a beginning inventory? With a different price than the purchased materials, How do we determine the AQ and AP? Thank you in advance

  • @portaltaker
    @portaltaker 2 роки тому

    Hi, I'm just wondering why it doesnt work when you do AP x SQ in the middle - why does it have to be AQ x SP?

  • @cw5948
    @cw5948 9 років тому +1

    Helpful video. Thanks.

  • @mbekele5
    @mbekele5 9 років тому +2

    you are amazing my friend..

    • @Edspira
      @Edspira  9 років тому +1

      +mulugeta bekele Thank you!

  • @cebomgi9540
    @cebomgi9540 5 років тому

    This guy is too damn good ,

  • @adilibrahim3849
    @adilibrahim3849 8 років тому

    Why we use (AP-SP)AQ to compute price variance instead of (AP-SP)SQ??

  • @cassiesiasimuna722
    @cassiesiasimuna722 3 роки тому

    Would appreciate if you changed the color of the paint next time. Otherwise loved your tutorial.

  • @saral2270
    @saral2270 7 років тому

    You are amazing! thank you so much! very grateful!

  • @gregdittman3974
    @gregdittman3974 9 років тому +2

    THANK YOU

  • @RangerXXT
    @RangerXXT 3 роки тому

    hmmm my text book does this with 4 columns, we're missing our flexible budget between aqXsp and sqXsp

  • @mmsea2962
    @mmsea2962 9 років тому +2

    solid concepts!!

  • @jinyangdeng875
    @jinyangdeng875 5 років тому +1

    Nuanced explanation on direct materials variance analysis, includes the case where Actual Quantity (Purchased) != Actual Quantity (Consumed), where the calculation of Total Variance would not make sense.

    • @KARIMSLOVERS
      @KARIMSLOVERS 4 роки тому

      You are absolutely correct! I noted this mistake!

  • @YMFINANCIAL
    @YMFINANCIAL 3 роки тому +1

    Legend 🙏🏾 thank u

    • @Edspira
      @Edspira  3 роки тому

      Happy to help!

  • @waadragainassar4288
    @waadragainassar4288 7 років тому +1

    you are the best ❤keep going

  • @jadelawar99
    @jadelawar99 7 років тому +3

    hello can you please drop a link for the sales mix variance im not able to find the video

    • @Edspira
      @Edspira  7 років тому +1

      Not sure I have produced that video, I'll try to get to it later this summer or fall

  • @taharadwan619
    @taharadwan619 4 роки тому

    Thank you very much

  • @987123654fgh
    @987123654fgh 9 років тому

    THANK YOU FOR THE VIDEOS!!!

  • @steijndijk5671
    @steijndijk5671 6 років тому

    Can the quantity variance also be identified as the direct material usage variance?

  • @deenathornton8904
    @deenathornton8904 2 роки тому +1

    Thanks!

    • @Edspira
      @Edspira  2 роки тому

      Thank you so much for your support!

  • @kyliev3990
    @kyliev3990 8 років тому

    have you not made a video on return on assets? i cant find it

  • @LAl-tl8ep
    @LAl-tl8ep 4 роки тому

    you are the best

  • @ilkeryesilkaya3168
    @ilkeryesilkaya3168 8 років тому +1

    Great Job. Thanx alot

  • @issamelsayd
    @issamelsayd 5 років тому

    Thank you Sir

  • @staylow2692
    @staylow2692 7 років тому

    can we use "adverse" rather than "unfavourable"?

  • @princemafunga6562
    @princemafunga6562 5 років тому

    why do we use standard price instead of actual price in determining direct materials usage variance?

  • @nospiritanimalshere2529
    @nospiritanimalshere2529 5 років тому

    Saviour!, great vids

  • @mattconcordia1447
    @mattconcordia1447 7 років тому +1

    you're the fucking man... have a final tomorrow and this really cleared everything up. THANK YOU!!

    • @Edspira
      @Edspira  7 років тому

      Awesome! I hope you aced that exam. Take care and have a great summer!

  • @donhouston916
    @donhouston916 6 років тому

    Is quantity variance the same as efficiency variance?

  • @tatendasithole2471
    @tatendasithole2471 4 роки тому

    Where do you lecture?

  • @MakingmoveswithJohnnyJ
    @MakingmoveswithJohnnyJ 6 місяців тому

    great stuff

  • @arianamm8932
    @arianamm8932 7 років тому

    Thank you!

  • @piyanutprayatsup6260
    @piyanutprayatsup6260 7 років тому

    thanks it helps a lot.

  • @ziqzem7790
    @ziqzem7790 4 роки тому

    hi would the answer be in negative for price variance if its favourable, thank you in advance to whomever who replies to this comment

  • @nicoletalingea5261
    @nicoletalingea5261 4 роки тому

    The best👍

  • @kostaschatzinov7050
    @kostaschatzinov7050 7 років тому +1

    the best

    • @Edspira
      @Edspira  7 років тому

      Thanks Kostas!

  • @AhmedRagab-ie7pz
    @AhmedRagab-ie7pz 6 років тому

    👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍👍

  • @ggmm117
    @ggmm117 8 років тому

    respex homie

  • @dianelisaballe8568
    @dianelisaballe8568 9 років тому

    Hello! what is the actual quantity purchased is the same as actual quantity used. does it affect SQ? Wouldnt there be no variance since there is no difference in used and purchased?

    • @quaqmireful
      @quaqmireful 8 років тому +1

      +Dianelis Aballe Yes, you are right. Variance, simply put, is the difference between the standard vs. Actuals. So if it is the same, then no variance :)

  • @alexandraowens667
    @alexandraowens667 3 роки тому +2

    These videos are such a huge resource for me in my accounting courses! I stared at the same problems for hours and watched your videos on variances twice and was able to get it. You explain it so simply.

    • @Edspira
      @Edspira  3 роки тому

      Thank you! I'm glad you're learning and hope you do well on your exams!

  • @austineodhiambo4724
    @austineodhiambo4724 7 років тому

    Thank you!