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33 Cards in this Set
- Front
- Back
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Master budget |
Principal output of a budgeting system |
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Master budget |
Made up of numerous individual budgets or schedules that are all interrelated |
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3 components of master budget |
Sales budget, Operational budget, Budgeted FS |
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Sales Budget |
First step in developing master budget. Displays the projected sales in unit for each quarter and then multiplies the unit sales by the sales price to determine sales revenue |
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Production Budget |
Second step in developing master budget. Shows the number of units to.be produced |
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Cash receipt budget |
A schedule detailing the expected cash collections during the budget period |
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Budgeted statement of cash flows |
A budget schedule providing information about the expected sources and used of cash for operating, investing, and financing activities during particular period of time |
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Budgeted Balance Sheet |
Shows the expected end of period balances for the company's assets, liabilities, and owner's equity |
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Budget padding |
Underestimating revenue and overestimating costs |
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Budgetary Slack |
Difference between revenue or cost projections that a person provides and a realistic estimate of the revenue or cost |
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Perfection standard (ideal standard) |
One that can be attained only under nearly perfect operating conditions. Such standards assume peak efficiency, lowest input prices |
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Direct material price variance (purchase price variance) |
Difference between actual and standard price multiplied by the actual quantity of material produced |
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Direct material quantity variance |
Difference between actual and standard quantity allowed, given actual output, multiplied by standard price |
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Recurring variance |
Deciding when to investigate a variance whether the a variance occurs repeatedly or only infrequently. Uses a rule of thumb |
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Purchasing manager |
Best position to influence material price variances through skillful purchasing practices |
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Production supervisor |
Most responsible for the efficient use of employee time (dl efficiency variance) |
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Standard costing system |
Cost control and product coating system in which cost variances are computed and production cost are entered on w/p inventory at their standard amounts |
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Gain sharing plans |
An incentive system that specifies a formula by which cost or productivity gains achieve by the company are shared with workers |
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Balance scorecard |
Balance perspective on Performance measurements |
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Budgeted schedule of cost of goods manufactured and sold |
Details the direct material, labor and manufacturing overhead costs to be incurred and shows the cogs to be sold during Budget period |
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Cost variance |
Difference between actual and standard cost |
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Participative budgeting |
Involve employees throughout an organization in the budgetary process |
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Cash budget |
Shows expected cash receipts as a result of selling goods or services and planned cash disbursement to pay the bills incurred |
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Cash receipts budget |
Any difference between actual costs and budgeted standard cost |
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Direct labor variance |
Used by managerial accountants to analyze direct labor coat by computing direct labor rate variance and direct labor efficiency variance |
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Direct material variance |
Managerial accountants show both complete by composting a direct material price variance and dm quantity variance |
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Budgeted balance sheet |
Show the overall financial results of the organizations planned operation for the budgeted period. It is the last step in master budget |
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Balanced scorecard |
Effective management requires a balanced perspective on performance measurement |
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Actual units produced x requirement |
Formula for standard quantity |
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AH(AR-SR) |
Formula for direct labor rate variance |
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Operational budget |
Specify how a company operations will be carried out to meet the demand for its goods or services |
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Short range budget |
Cover a year a quarter a month |
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Manaement by exception |
Process if following of an only significant cost variances |
