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Material Cost Variance %

Purpose -

Tracks cost deviations from expected material costs.

Operational Definition -

((Actual Material Cost - Standard Material Cost) / Standard Material Cost) * 100

Type of Metrics -

KPI

Function -

Finance

Associate Function -

Finance

Desired Trend -

Lower the better

Recommended Frequency - 

Monthly

External References -

https://opsdog.com/categories/kpis-and-metrics/materials-management

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