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20 Cards in this Set
- Front
- Back
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a bench mark or norm for measuring performance.
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a standard
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a management system in which standards are set for various activities, with actual results compared to these standards.
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management by exception
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Can be attained only under the best circumstances. They allow for no machine break downs or other work interruption, and they call for alevel of effort that can be attained only by the most skilled and efficient employees working at peak effor 100% of the time.
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ideal standards
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allo for normal machine downtime and employee rest periods, and they can be attained through reasonable, though highly efficient, efforts by the average worker.
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practical standards
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Who is typically responsible for the materials price variance?
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the purchasing manager.
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If the purchasing manager must request express delivery who is responsible for materials price variance?
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production manager
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Who is responsible for control of the labor effieciency variance?
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The managers in charge of production
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Who would be responsible for the labor efficiency variance if poor quality materials resulted in excessive labor processing time?
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purchasing manager
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prepared at the beginning of the budegiting period and is valid for only the planned level of activity
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static budget
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a budget that can be used to estimate what costs should be for any level of activity within a specified range.
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flexible budget
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The estimated total amount of the base in the formula for the predetermined overhead rate is called the
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denominator level of activity
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Once the denominator activity has been chosen, it remains un changed throughout the year, even if actual level of activity differs from what was estimated. True/False
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True
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a business segment whose manager has control over cost but has no control over revenue or investments in operating assets
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Cost center
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A business segment whose manager has control over cost, revenue, and investments in operating assets.
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Investment center
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A business segment whose manager has control over cost and revenue but has no control over investments in operating assets.
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profit center
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used for any part of an organization whose manager has control over and is accountable for cost, profit, or investments
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responsibility center
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a fixed cost that is incurred because of the existence of the segment
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traceable fixed cost
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a fixed cost that supports the operations of more than one segment, but is not traceable in whole or in part to any one segment.
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common fixed cost
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is obtained by deducting the traceable fixed costs of a segment from the segment's contribution margin.
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segment margin
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The net operating income that an investment center earns above the minimum required return on its operating assets.
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residual income
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