Standard Cost Variances -

Variance – The difference between actual and standard cost.

Variance Analysis – The analysis of study of cause and effect of variance.

There are 2 basic types of variances from a standard that can arise, which are-
 Rate Variance
 Volume Variance
Rate Variance – also known as price variance is the difference between the actual
price paid for something and the expected price, multiplied by the actual quantity
purchased.
Volume Variance- is the difference between the actual quantity sold or consumed,
multiplied by the standard price or cost per unit.