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20 Cards in this Set
- Front
- Back
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What are the two types of standards or "benchmarks" |
Quantity and Price |
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What is a quantity standard benchmark? |
Amount needed for a final unit of product from DM, DL, and MOH |
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What is a price standard? |
Price paid for cash input |
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What is the total in a standard cost card? |
Final manufacturing cost of a unit of product. |
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What does the price variance and quantity variance mean? |
purchased and used |
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DM price variance is the responsibility of who? |
The purchasing manager |
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DM quantity variance is the responsibility of who? |
The production manager. |
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Planning Budgets does what? |
Develops financial goals |
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Control Budgets does what? |
Ensuring we met our goals. |
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What is responsibility accounting? |
Every line item in a budget is the responsibility of a manager. Only responsible to the extent it can be controlled. |
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This is a series of interdependent budgets. |
Master Budget |
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What are the goals of a master budget? |
Desired outputs |
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What is a continuous or perpetual budget? |
A 12-month budget that rolls forward one month (or quarter) as the current month (or quarter) is completed. |
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What are the budget periods? |
Monthly, quarterly, and annually |
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How do you prepare a sales budget? |
Budgeted Unit Sales (BUS) * Sales Price (SP) per unit. |
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How do you prepare a production budget? |
BUS + Desired E.I. - B.I. |
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How do you prepare a DL budget? |
Required Production * DLH per unit * DL cost per hour. |
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What are the two types of variances? |
Activity and Revenue & Spending |
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What's compared in activity variances? |
Planning V.S. Flex |
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What goes in Revenue and Spending Variances? |
Flex Vs. Actual |
