How do I split cost variance into quantity and unit-price contributions?
Quantity effect uses planned unit price; price effect uses actual quantity. Both effects sum to actual cost less plan.
Open Variance ExplainedTry the worked example
These are the example inputs from Variance Explained. Replace them in the tool to run your own case.
| Cost line | Planned units | Plan EUR/unit | Actual units | Actual EUR/unit |
|---|---|---|---|---|
| Support | 100 | 6 | 110 | 6.5 |
| Storage | 80 | 2 | 70 | 2 |
Example result
€95.00 net variance
Who uses this?
Department controller. The free online tool runs the calculation in your browser. To edit the files and use the tools offline in one business, see the €49 offline edition.
Where the idea came from
Split cost variance into quantity and unit-price contributions. The business case pairs prepared back-office work with a person responsible for exceptions. Benchcraft designed this tool’s inputs, decision rule and example for this office task.
Original video