This course explains the concepts of standard costing and manufacturing variances in simple terms that individuals with and without financial background can understand and more importantly leverage for improved performance.

Finance may be the language of business, but not everyone speaks it. That's why it is often challenging to develop a common understanding of financial concepts across the organization. Financial leaders should share this course with non-financial team members to establish a common approach and leverage the organization's understanding of these concepts and drive performance.

Learning Objectives
  • Explore the concept of Standard Costs and recognize how they are developed and used.
  • Explore the concept of Variances.
  • Identify Material, Labor and Overhead variances and how they are calculated.
  • Identify Material, Labor and Overhead variances are handled from both a performance and accounting perspective

 

 

Last updated/reviewed: August 28, 2023
59 Reviews (222 ratings)

Reviews

5
Anonymous Author
This course though basic did a great job of explaining standard costs and variances. It was easy to grasp and then be able to tell the story about why inventory variances are occurring as well as providing a framework for telling the story about the variances and what they mean.

4
Member's Profile
As an accountant, this was a great refresher course. For non-accountants, it provides the basic knowledge to better understand the financial needs for this information as well as gaining valuable insight into the downstream business decisions.

5
Anonymous Author
Great course, highly recommended for all. Even though I have been in the field, it never hurts to brush up the basic stuff. Instructor clearly demonstrated passion and love for cost accounting. One of the best courses here!

5
Anonymous Author
A great yet simple course for understanding manufacturing variances plus mix variance. Good for strengthening your variance concepts and calcs, and great for helping you prepare the CMA exam on variances.

4
Anonymous Author
I liked the flow of the course. It would be helpful to have a written dialogue or presentation in addition for the slides. Something to help those who are hearing impaired and to use as a course book.

5
Anonymous Author
This course is very easy to follow and a good refresher for anyone who has been away from the manufacturing environment. The speaker presents well, keeping you interested throughout the course.

4
Member's Profile
Would like to have seen examples calculations incorporated into the slide PDF supporting materials Also, beneficial to have Excel template of Recap of Sales Mix Calculation made available

5
Anonymous Author
Great primer for all employees to inform them how they impact the product costs and profitablity. How various factors impact costs. Some controllable and some not such as mix and efficiency

5
Anonymous Author
I like that the course broke down standard cost into the basics. I felt it was a good introduction to the concepts that will then allow me to explore more detailed course options.

5
Member's Profile
Well presented refresher - material was easy to understand and instructor moved well through the topic without getting bogged down in details (or worse, reading numerical slides).

5
Anonymous Author
Good course length given the wide variety of topics discussed and considered. The supplementary PDF information was incredibly helpful in preparing for the final exam.

4
Anonymous Author
i haven't done cost accountings in over 20 years. Great refresher course with VERY practical examples and illustrations. One of the better courses I have taken.

5
Anonymous Author
Explanations are simple and clear. Examples and calculations help understand the subject better. Both finance and non-finance can benefit from this course.

4
Anonymous Author
Overall all course was very good and easy to understand the concept of standard costing , adding alive case studies will more beneficial

5
Anonymous Author
This course has provided a limited detail about the course and It should be more in details with more examples for taking other items

5
Member's Profile
Good basic review of standard costs, variance analysis, and how these calculations are beneficial to drive business operations.

5
Member's Profile
great course, that Im sure ill be coming back to as a refresher. I the examples of with the brewing company really helped.

5
Anonymous Author
This course was presented well, after all who doesn't like BEER. A very good breakdown of price vs volume analysis.

5
Member's Profile
Another GREAT course. Bud lays out the basics and is my favorite presenter. Bud PLEASE make more classes for us.

5
Member's Profile
Great presentation. Really liked the use of examples. Wish I had taken this course before I switched to fiancé.

5
Anonymous Author
Bud does a great job presenting this topic. It is engaging and very fluent in the presentation. I learned a lot.

4
Member's Profile
Very well-designed presentation that breaks down and discusses the key concepts, in easy to understand steps.

5
Member's Profile
Excellent refresher to standard costing for someone who has been out of the manufacturing world for some time

5
Member's Profile
I love standard cost accounting and Mr. Kulesza does a great job explaining the foundations of the concepts!

Member's Profile
good to have overview, but real world is more complex. hope another course which handles more complex cases

5
Member's Profile
Bud is simply an excellent teacher. Terrific content and he leads with a passion for what he is teaching.

5
Anonymous Author
This is a good overview of standard costs and variance calculation. The examples are easy to understand.

4
Anonymous Author
Great examples to reinforce understanding. However, the examples are missing from the pdf slide deck.

5
Anonymous Author
The descriptive explanations on the different variances. Cost or accountants in private industry

5
Member's Profile
Well-organized and clear. Anyone teaching managerial accounting would benefit from this course.

5
Anonymous Author
Overall good experience and helped in enhancing knowledge about standard costing and variances

5
Member's Profile
A lot of good information. Instructor was easy to listen to and provided great examples.

4
Member's Profile
It is simple and easier.. Though, calculation should have been there for variances......

4
Anonymous Author
good refresher course for auditors who may not have manufacturing clients regularly

5
Member's Profile
Very well done. Great examples. Helped solidify variances in my mind.

4
Anonymous Author
Really liked the course. I would suggest add a few more calculations.

5
Member's Profile
very good overview of standard costs and variances - clearly explained

5
Anonymous Author
Materials were detailed and made the subject easier to comprehend

4
Member's Profile
Through this course i can learn the basic of standard costing..

5
Member's Profile
It was a very thorough course for the amount of time allotted.

4
Anonymous Author
Good course for a beginners understanding of cost accounting

4
Member's Profile
All the points has be explained clearly and understandable

5
Member's Profile
This course definitely simplified standard cost analysis.

5
Member's Profile
Good basic course to refresh cost accounting knowledge.

3
Anonymous Author
well thought out and acceptable for cpe review purposes

5
Member's Profile
Good review, examples were helpful to show concept.

4
Member's Profile
Excellent high level overview of standard costs.

5
Member's Profile
Very good course, liked the example and coverage

4
Member's Profile
Gives good understanding of standard costs.

5
Member's Profile
Great course! Very informative and helpful.

4
Member's Profile
Concepts were broken down effectively.

5
Anonymous Author
Well presented -practical concepts

5
Anonymous Author
Thorough and clear presentation!

4
Member's Profile
Good examples and content

5
Member's Profile
Good review of concepts

5
Anonymous Author
nicely summarized.

4
Anonymous Author
helpful overview

4
Anonymous Author
valued course

5
Member's Profile
Informative!

Prerequisites
Course Complexity: Foundational

No advanced preparation or prerequisites are required for this course.

Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Course Questions and Answers(2 Questions)
Member's Profile

I have liked an overall presentation on the standar costs and variance analysis. I have one questions that who is responsible for overhead variances in terms of variable or fixed overhead costs?

Thank you,
Chirag

Member's Profile

Thanks Chirag for such a good question. I embrace the concept of responsibility accounting. Simply stated the individuals (departments) that caused the variances are those who control the variances and should accept responsibility for the costs. In the case of overhead, normally, variable costs are the costs that that we have control of and therefore are responsible for and fixed costs are often cost assigned to our departments by others for which they are in control. The key factor od responsibility is who authorized and approved the expenditure. A good example of overhead fixed costs that can vary from budget and cause variances is depreciation. While department managers bear the burden of these costs they are not responsible for things they cannot control such as unbudgeted changes in depreciation methods that they have no control over (Decision made by the Finance / Accounting Department) . However the unbudgeted increase in depreciation cause by an unbudgeted purchase of equipment would be the responsibility of the manager the individual who authorized the purchase. It doesn’t matter why the purchase was made it is that fact that the costs were not budgeted and following a responsibility accounting approach, the person making the decision is responsible for the variance. Hope this brief explanation of responsibility accounting as it relates to overhead variances answers your question.

Instructor for this course
Course Syllabus
INTRODUCTION AND OVERVIEW
  Introduction to Standard Costs and Variances 6:01
Standard Costs and Variances
  Standard Costs 15:32
  Variances 6:32
  Calculating Material, Labor, and Overhead and Variances 8:01
  Example: Labor Variances12:04
  Mix Variances 12:08
CONCLUSION
  Internal and External Implications of using Standard Cost and Variances 9:36
Continuous Play
  Standard Cost and Variances Simplified 1:09:54
SUPPORTING MATERIALS
  Slides: Standard Costs and Variances SimplifiedPDF
  Standard Costs and Variances Simplified Glossary/IndexPDF
REVIEW and TEST
  REVIEW QUESTIONSquiz
 FINAL EXAMexam