Accounting Exam Iii

Front 1

Standard Quantity per unit

Back 1

reflects the amount of material required for each unity of finished product, as well as an allowance for unavoidable waste, spoilage and other normal inefficiencies.

Front 2

Standard price per unit

Back 2

is for materials and reflects the final, delivered cost of the materials, net of any discounts taken.

Front 3

Standard hours per unit

Back 3

is the standard of direct labor required to complete a project

Front 4

Materials price variance

Back 4

AQ(AP-SP)

Front 5

Standard Quantity allowed

Back 5

means the amount of an input that should have been used to produce the actual output of the period.

Front 6

Variances

Back 6

differences between standard prices and actual prices and between standard quantities and actual quantities.

Front 7

Standard rate per hour

Back 7

for direct labor should include wages, employment taxes, and fringe benefits.

Front 8

Materials Quantity Variance

Back 8

SP(AQ-SQ)

Front 9

Labor Rate Variance

Back 9

the price variance for direct labor = AH(AR-SR)

AH – Actual Hours
AR – Actual Rate
SR – Standard Rate

Front 10

Labor Efficiency Variance

Back 10

measures the productivity of direct labor = SR(AH-SH)

Front 11

Variable Overhead Spending

Back 11

AH(AR-SR)

Front 12

Variable Overhead efficiency variance

Back 12

SR(AH-SH)

Front 13

Balanced Scorecard

Back 13

is an integrated set of performance measures that are derived from and support the company’s strategy.

Front 14

Static Budget

Back 14

is prepared at the beginning of the budgeting period and is valid for only the planned level of activity.

Front 15

Flexible Budget

Back 15

estimates what costs should be for any level of activity within a specific range.

Front 16

Predetermined Overhead Rate

Back 16

(Estimated total manufacturing overhead cost)/(Estimated total amount of the allocation base (MH, DLH, ect.))

Front 17

Predetermined Overhead Rate

Back 17

(Estimated total manufacturing overhead cost)/(Estimated total amount of the allocation base (MH, DLH, ect.))

Front 18

Predetermined Overhead Rate

Back 18

(Overhead from the flexible budget at the denominator level of activity)/(Denominator level of activity)

Front 19

Budget Variance

Back 19

(Actual Fixed Overhead Cost) – (Budget fixed overhead cost)

Front 20

Responsibly center

Back 20

is used for any part of an organization whose manager has control over and is accountable for cost, profit, or investments.

Front 21

Cost Center

Back 21

has control over costs, but not over revenue or the use of investment funds.

Front 22

Profit Center

Back 22

has control over both costs and revenue, but not over the use of investment funds.

Front 23

Investment Center

Back 23

has control over cost, revenue and investments in operating assets.

Front 24

Traceable fixed cost

Back 24

is a fixed cost that is incurred because of the existence of the segment and would disappear if the segment were eliminated.

Front 25

ROI (Return on Investment)

Back 25

(Net Operating Income)/Average Operating Assets

Front 26

Margin

Back 26

Net Operating Income/Sales

Front 27

Turnover

Back 27

Sales/Average Operating Assets

Front 28

Economic Value Added (EVA)

Back 28

is an adaptation of residual income that had been adopted by many companies.