Deviations
The following deviations may occur between actual and budgeted amounts.
- Occupation deviation
- Consumption deviation
- Over-/undercoverage
Occupation deviation
Occupation deviation is only applicable to full-cost accounting systems.
-
Quantity Based:
allowed costs - (budgeted performance quantity * total effective rate/surcharge) -
Amount Based:
allowed costs - (surcharge base amount * effective surcharge)
Consumption deviation
Actual costs - allowed costs