âOne of the most important changes to American Marketing Associationâs new definition for marketing is that marketing is presented as a broader activity,â said Nancy Costopulos, CMO of the American Marketing Association.he new definition reads, âMarketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.â.
A cost variance is the difference between the cost actually incurred and the budgeted or planned amount of cost that should have been incurred.ost variances are most commonly tracked for expense line items, but can also be tracked at the job or project level, as long as there is a budget or standard against which it can be calculated. These variances form a standard part of many management reporting systems.
The standard cost per labor hour is $20, so the calculation of its labor efficiency variance is: (750 Actual hours - 500 Standard hours) x $20 Standard rate = $5,000 Labor efficiency variance. Related Podcasts. Episode 111 of the Accounting Best Practices podcast discusses variance analysis.he variance is useful for spotlighting those areas in the production process that are using more labor hours than anticipated. This variance is calculated as the difference between the actual labor hours used to produce an item and the standard amount that should have been used, multiplied by the standard labor rate.