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49 Cards in this Set

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Budget committee  -9
A group of key managers who are responsible for overall policy matters relating to the budget program and for coordinating the preparation of the budget.
Budget  -9
A detailed plan for the acquisition and use of financial and other resources over a specified time period.
Cash budget  -9
A detailed plan showing how cash resources will be acquired and used over some specific time period.
Continuous budget  -9
A 12-month budget that rolls forward one month as the current month is completed.
Control  -9
Those steps taken by management to increase the likelihood that the objectives set down at the planning stage are attained and that all parts of the organization are working together toward that goal.
Direct labor budget  -9
A detailed plan showing labor requirements over some specific time period.
Direct materials budget  -9
A detailed plan showing the amount of raw materials that must be purchased during a period to meet both production and inventory needs.
Ending finished goods inventory budget  -9
A budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet.
Manufacturing overhead budget  -9
A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period.
Master budget  -9
A summary of a company's plans in which specific targets are set for sales, production, distribution, and financing activities and that generally culminates in a cash budget, budgeted income statement, and budgeted balance sheet.
Material requirements planning (MRP)  -9
An operations management tool that uses a computer to help manage materials and inventories.
Merchandise purchases budget  -9
A budget used by a merchandising company that shows the amount of goods that must be purchased from suppliers during the period.
Participative budget  -9
See Self-imposed budget.
Perpetual budget  -9
See Continuous budget.
Planning  -9
Developing objectives and preparing budgets to achieve those objectives.
Production budget  -9
A detailed plan showing the number of units that must be produced during a period in order to meet both sales and inventory needs.
Responsibility accounting  -9
A system of accountability in which managers are held responsible for those items of revenue and cost—and only those items—over which the manager can exert significant control. The managers are held responsible for differences between budgeted and actual results.
Sales budget  -9
A detailed schedule showing the expected sales for coming periods; these sales are typically expressed in both dollars and units.
Self-imposed budget  -9
A method of preparing budgets in which managers prepare their own budgets. These budgets are then reviewed by the manager's supervisor, and any issues are resolved by mutual agreement.
Selling and administrative expense budget  -9
A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period.
Zero-based budget  -9
A method of budgeting in which managers are required to justify all costs as if the programs involved were being proposed for the first time.
Balanced scorecard  -10
An integrated set of performance measures that is derived from and supports the organization's strategy.
Bill of materials  -10
A listing of the amount of each type of material required to make a unit of product.
Delivery cycle time  -10
The elapsed time from receipt of a customer order to when the completed goods are shipped.
Ideal standards  -10
Standards that allow for no machine breakdowns or other work interruptions and that require peak efficiency at all times.
Labor efficiency variance  -10
A measure of the difference between the actual hours taken to complete a task and the standard hours allowed, multiplied by the standard hourly labor rate.
Labor rate variance  -10
A measure of the difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period.
Management by exception  -10
A system of management in which standards are set for various operating activities, with actual results compared to these standards. Any differences that are deemed significant are brought to the attention of management as "exceptions."
Manufacturing cycle efficiency (MCE)  -10
Process (value-added) time as a percentage of throughput time.
Materials price variance  -10
A measure of the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.
Materials quantity variance  -10
A measure of the difference between the actual quantity of materials used in production and the standard quantity allowed, multiplied by the standard price per unit of materials.
Practical standards  -10
Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker.
Standard cost card  -10
A detailed listing of the standard amounts of inputs that should go into a unit of product, multiplied by the standard price or rate that has been set for each input.
Standard cost per unit  -10
The standard cost of a unit of product as shown on the standard cost card; it is computed by multiplying the standard quantity or hours by the standard price or rate for each cost element.
Standard hours allowed  -10
The time that should have been taken to complete the period's output. It is computed by multiplying the actual number of units produced by the standard hours per unit.
Standard hours per unit  -10
The amount of labor time that should be required to complete a single unit of product, including allowances for breaks, machine downtime, cleanup, rejects, and other normal inefficiencies.
Standard price per unit  -10
The price that should be paid for a single unit of a material, including allowances for quality, quantity purchased, shipping, receiving, and other such costs, net of any discounts allowed.
Standard quantity allowed  -10
The amount of materials that should have been used to complete the period's actual output. It is computed by multiplying the actual number of units produced by the standard quantity per unit.
Standard quantity per unit  -10
The amount of materials that should be required to complete a single unit of product, including allowances for normal waste, spoilage, rejects, and similar inefficiencies.
Standard rate per hour  -10
The labor rate that should be incurred per hour of labor time, including employment taxes, fringe benefits, and other such labor costs.
Throughput time  -10
The amount of time required to turn raw materials into completed products.
Variable overhead efficiency variance  -10
The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate.
Variable overhead spending variance  -10
The difference between the actual variable overhead cost incurred during a period and the standard cost that should have been incurred based on the actual activity of the period.
Variance  -10
The difference between standard prices and quantities on the one hand and actual prices and quantities on the other hand.
Budget variance  -11
A measure of the difference between the actual fixed overhead costs incurred during the period and budgeted fixed overhead costs as contained in the flexible budget.
Denominator activity  -11
The activity figure used to compute the predetermined overhead rate.
Flexible budget  -11
A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to compare to actual costs incurred.
Static budget  -11
A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
Volume variance  -11
The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate.