Material Variance

Difference between actual material cost or usage and standard or expected material cost or usage.

Examples

01The material variance on the steel brackets shows 3 % more steel used than standard because the laser nesting was set up badly.
02The weekly cost review lists the largest material variances by part number, with usage and price effects shown separately.
03After the nesting programme is optimised, the material variance returns to normal and the saving is confirmed in the next month's figures.