# profit variance

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**profit variance**— In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labour …2

**profit variance**— In standard costing, the variance consisting of the difference between the standard operating profit budgeted to be made on the items sold and the actual profits made. The analysis of the profit variance into its constituent sales, direct labour …3

**sales mix profit variance**— See: sales margin mix variance …4

**sales volume profit variance**— /seɪlz ˌvɒlju:m prɒfɪt ˌveəriəns/ noun the difference between the profit on the number of units actually sold and the forecast figure …5

**sales mix profit variance**— /ˌseɪls mɪks prɒfɪt ˌveəriəns/ noun the differing profitability of different products within a product range …6

**Variance swap**— A variance swap is an over the counter financial derivative that allows one to speculate on or hedge risks associated with the magnitude of movement, i.e. volatility, of some underlying product, like an exchange rate, interest rate, or stock… …7

**Variance (accounting)**— In budgeting (or management accounting in general), a variance is the difference between a budgeted, planned or standard amount and the actual amount incurred/sold. Variances can be computed for both costs and revenues.The concept of variance is… …8

**analysis of variance**— ANOVA; variance analysis 1) A commonly used method for examining the statistically significant differences between the means of two or more populations In its simplest form (one way analysis of variance), it involves only one dependent variable… …9

**analysis of variance**— ANOVA; = variance analysis In standard costing and budgetary control, the analysis of variances in order to seek their causes. The total profit variance or production cost variance is analysed into sub variances to indicate the major reasons for… …10

**sales margin mix variance**— sales mix profit variance In standard costing, the adverse or favourable variance arising as a result of a difference between the actual mix of sales achieved and the standard mix of sales. It is the difference between the actual total sales… …11

**Sales Mix Variance**— The difference in the quantity of customer purchases of each product or service compared to the quantities that a business expected to sell. Sales mix variance compares the actual mix of sales to the budgeted mix. The metric can be used for… …12

**Unfavorable Variance**— An accounting term that describes instances where actual costs are greater than the standard or expected costs. An unfavorable variance can alert management that the company s profit will be less than expected. The sooner an unfavorable variance… …13

**overhead efficiency variance**— overhead productivity variance; = productivity variance In a standard costing system, that part of the overhead total variance that arises from the more or less efficient use of the time available to carry out the actual production. It compares… …14

**direct materials price variance**— In a standard costing system, a variance arising as part of the direct materials total cost variance. There are two alternative points at which the materials price variance may be established: when the material is purchased or when it is issued… …15

**direct materials usage variance**— In a standard costing system, a variance arising as part of the direct materials total cost variance. It compares the actual quantity of material used to carry out production with the standard quantity allowed, and values the difference at the… …16

**Tendency of the rate of profit to fall**— The tendency of the rate of profit to fall (TRPF) is a hypothesis in economics and political economy, most famously expounded by Karl Marx in chapter 13 of Das Kapital Vol. 3. It was generally accepted in the 19th century. Economists as diverse… …17

**adverse variance**— unfavourable variance In standard costing and budgetary control, the differences between actual and budgeted performance of an organization where the differences create a deduction from the budgeted profit. For example, this may occur if the… …18

**direct labour efficiency variance**— In a standard costing system, a variance arising as part of the direct labour total cost variance. It compares the actual labour time taken to carry out an activity with the standard time allowed and values the difference at the standard direct… …19

**direct labour rate of pay variance**— In a standard costing system, a variance arising as part of the direct labour total cost variance. It compares the actual rate paid to direct labour for an activity with the standard rate of pay allowed for that activity for the actual hours… …20

**Sales Price Variance**— The difference between the amount of money a business expects to sell its products or services for and the amount of money it actually sells its products or services for. Sales price variance means that a business will be more or less profitable… …