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19 Cards in this Set

  • Front
  • Back
Static Budget
A budget that is based on only one level of activity
Master-Budget Variance
(Static-Budget Variance)
The variance of actual results from the master (static) budget
Unfavorable Cost Variance
A variance that occurs when actual costs are more than budgeted costs
Favorable Cost Variance
A variance that occurs when actual costs are less than budgeted costs
Flexible Budget
(Variable Budget)
A budget that adjusts for changes in sales volume and other cost-driver activities
Activity-Based Flexible Budget
A budget based on budgeted costs for each activity and related cost driver
Flexible-Budget Variances
The variances between the flexible budget and the actual results
Activity-Level Variances
The differences between the master budget amounts and the amounts in the flexible budget
The degree to which a goal, objective, or target is met
The degree to which an organizations uses appropriate amounts of inputs to achieve a given level of outputs
Sales-Activity Variances
Variances that measure how effective managers have been in meeting the planned sales objective, calculated as actual unit sales less master budget unit sales times the budgeted unit contribution margin
Expected Cost
The cost most likely to be attained
Standard Cost
A carefully determined cost per unit that should be attained
Perfection Standards (Ideal Standards)
Expressions of the most efficient performance possible under the best conceivable conditions, using existing specifications and equipment
Currently Attainable Standards
Levels of performance that managers can achieve by realiztic levels of effort
Price Variance
The difference between actual input prices and standard input prices multiplied by the actual quantity of inputs used
Usage Variance (Quantity Variance, Efficiency Variance)
The difference between the quantity of inputs actually used and the quantity of inputs that the company should have used to achieve the actual quantity of output multiplied by the standard price of the input
Variable-Overhead Efficiency Variance
An overhead variance caused by actual cost-driver activity differing from the standard amount allowed for the actual output achieved
Variable-Overhead Spending Variance
The difference between the actual variable overhead and the amount of variable overhead budgeted for the actual level of cost-driver activity