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10 Cards in this Set
- Front
- Back
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The amount of an input that should have been used to complete the period’s actual output |
STANDARD QUANTITY ALLOWED |
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The amount of an input that should be required to complete a single unit of product, including allowances for normal waste, spoilage, rejects |
STANDARD QUANTITY PER UNIT |
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A number of separate but interdependent budgets that formally lat out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet |
MASTER BUDGET |
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A management system in which standards are for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions |
MANAGEMENT BY EXCEPTION |
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A variance that is computed by taking the difference between the actual quantity of the input used and the amount of the input that should have been used for the actual level of output by the standard price of the input |
QUANTITY VARIANCE |
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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. It is also referred to as the variable overhead spending variance |
VAR. OVERHEAD RATE VARIANCE |
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A detailed plan showing how cash resources will be acquired and used over a specific time period. It is developed from several budgets that must be adjusted for non-cash items like depreciation expense |
CASH BUDGET |
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A detailed plan showing the production costs, other than direct materials and direct labor that will be incurred over a specified time period |
OVERHEAD BUGET |
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A rate used to charge manufacturing overhead cost to items produced that is established in advance for each period. It can be found on the manufacturing overhead budget. It can be split into variable and fixed portions |
PREDETERMINED OVERHEAD RATE |
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A variance that is computed by taking the difference between the actual price and the standard price and multiplying the result by the actual quantity of the input |
PRICE VARIANCE |
