In a manufacturing operation this is material’s standard cost minus material used actual cost. A company calculates that the materials needed to manufacture one of its products costs $5, as an example. The actual cost during a certain period is $6. The company discovers that The materials quantity variance is $1 times the number of units manufactured.
Link to This DefinitionDid you find this definition of MATERIALS QUANTITY VARIANCE (MQV) helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary