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25 Cards in this Set
- Front
- Back
Balanced Scorecard
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An integrated set of performance measures that are derived from and support the organizations strategy
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Delivery Cycle Time
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The elapsed time from receipt of a customer order to when the completed goods are shipped to the customer
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Ideal Standards
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Standards that assume peak efficiency at all times
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Labor Efficiency Variance
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The differnce between the actual hours taken to complete a task and the standard hours allowed for the actual output multiplied b the standard hourly labor rate
(actual hours - standard hours) X standard hourly labor rate |
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Labor Rate Variance
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actual hourly labor rate - standard rate X the number of hours worked during the period
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Management by Exception
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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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Materials Price Variance
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(actual unit price paid for an item - standard price) X quantity purchased
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Materials Quantity Variance
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(Actual quantity of materials used in production - standard quantity allowed for actual output) X standard price per unit of materials
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Practical Standards
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standards that allow for normal machine downtime and other work interruptions that can be attained through reasonable, though highly efficient, efforts by the average worker
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Standard Cost per unit
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The standard quality allowed of an input per unit of a specific product, multiplied by the standard price of the input
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Standard hours allowed
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the time that should have been taken to complete the period's output.
actual number of units produced X standard hours per unit |
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Standard hours per unit
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the amount of direct 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.
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Standard Price Per Unit
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the price that should be paid for an input.
*should be net of discounts and should include any shipping costs |
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Standard quantity allowed
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the amount of an input that should have been used to complete the period's actual output.
actual number of units produced X standard quantity per unit |
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standard quantity per unit
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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, and othern normal inefficiencies
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standard rate per hour
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the labor rate that should be incurred per hour of labor time, including employment taxes and fringe benefits
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variable overhead spending variance
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(actual variable overhead cost incurred during a period - standard cost that should have been incurred based on the actual activity of the period)
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Variances
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(standard prices - actual prices) + (standard quantities - actual quantities)
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Budget Variance
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(actual fixed overhead costs incurred - budgeted fixed overhead costs in the flexible budget)
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Denominator Activity
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the level of activity used to compute the predetermined overhead rate
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Flexible Budget
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A budget that can be used to estimate what costs should be for any level of activity within a specific range
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Static Budget
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A budget created at the beginning of the budgeting period that is valid only for the planned level of activity
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Volume Variance
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the variance arises whenever the standard hours allowed for the actual output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate.
fixed component of the predetermined overhead rate X (denominator hours - standard hours allowed for the actual output) |
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Operating Department
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A department in which the central purpose fo the organization are carried out
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Service Department
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A department that does not directly engage in operating activities; rather, it provides services or assistance to the operating departments
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