SAD mnemonic – Becker

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    Topic
  • #200142
    ryan33
    Participant

    Becker Question –

    The mnemonic SAD seems very helpful and I think I already have it memorized, however I am confused as to why they say it has to be that order when the previous page is different. The mnemonic says standard – Actual = difference. Hence SAD. BUT, on the previous page where it first lists the different variance equations, they are all actual – standard. For example

    DM price variance = actual quantity purchased x (Actual price – standard price)

    Anybody know why they do this? Which one is correct? Or does it not matter and you just think through the numbers and whether it would be favorable or not? I don’t think it’s a huge deal, just annoying that the examples before are the opposite way. Thanks!

    FAR - 65,74,73,78
    AUD - 72, 73
    BEC -
    REG -

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  • #758366
    Biff-1955-Tannen
    Participant

    If you can think about whats going on with the numbers to find if it's favorable or unfavorable it won't make a difference

    AUD - 93
    BEC - 83
    FAR - 83
    REG - 84
    Nobody calls me chicken

    AUD 93 Jan 16
    BEC 83 Feb 16
    FAR 83 Apr 16
    REG 84 May 16

    99% Ninja MCQ only

    #758367
    ryan33
    Participant

    Thats what I figured – thank you!

    FAR - 65,74,73,78
    AUD - 72, 73
    BEC -
    REG -

    #758368
    Anonymous
    Inactive

    @ryan33 great attention to detail!

    i noticed the same exact thing when i was studying for BEC. they are contradicting themselves from one page to the next. i thought i was doing something wrong and didnt post it as a question here. i jsut figured i would use common sense to see which way it goes. after all, memorization means nothing

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