standard cost variance report

A standard cost variance report compares the estimated costs of producing goods or services to the actual costs incurred. It helps identify whether costs were higher or lower than expected, indicating efficiency or areas needing improvement. The report breaks down variances into categories like materials, labor, and overhead, providing detailed insights. This helps management control expenses, improve budgeting accuracy, and make informed decisions to enhance overall profitability. In essence, it’s a financial analysis tool that tracks performance against set cost standards to ensure efficient operations.