Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Acct 314

Test 2

A proposed quantitative plan of action by management for a specified period Budget
An aid to coordinating what needs to be done to implement that plan Budget
May include both financial and nonfinancial data Budget
a part, segment, or division/department/subunit of an organization whose manager is accountable for a specified set of activities. Responsibility Center
a system that measures the plans, budgets, actions, and actual results of each responsibility center. Responsibility accounting
RESPONSIBILITY CENTRES - accountable for costs only Cost
RESPONSIBILITY CENTRES - accountable for revenues only Revenue
RESPONSIBILITY CENTRES - accountable for revenues and costs Profit
RESPONSIBILITY CENTRES - accountable for investments, revenues, and costs Investment
used to assist managers in planning and budgeting. Sensitivity analysis
a “what if” technique that illustrates the impact of changes from the predicted data. Sensitivity analysis
the degree of influence that a manager has over costs, revenues, or related items for which he is being held responsible. Controllability
focuses on information sharing, not in laying blame on a particular manager Responsibility accounting
Budgets offer feedback in the form of ________: actual results deviate from budgeted targets. variances
provide managers with Early warning of problems variances
provide managers with A basis for performance evaluation variances
provide managers with A basis for strategy evaluation variances
The budgeting process may be abused both by superiors and subordinates, leading to ______ outcomes negative
Superiors may dominate the budget process or hold subordinates accountable for events they have no ______ over. control
The practice of underestimating budgeted revenues, or overestimating budgeted expenses, in an effort to make the resulting budgeted goals (profits) more easily attainable. Budgetary Slack
(T or F) A budget is the quantitative expression of a proposed plan of action by management for a specified period. True
T of F? Budgeting includes only the financial aspects of the plan and NOT any nonfinancial aspects such as the number of physical units manufactured. False
T of F? Budgets can play both planning and control roles for management. True
T of F? It is best to compare this year's performance with last year's actual performance rather than this year's budget. False
T of F? Research shows that challenging budgets improve employee performance because employees view falling short of budgeted numbers as a failure. True
T or F? If we increase the selling price of our product, we should probably expect an increase in the number of these products sold. False
the difference between the actual result and the corresponding static budget amount Static-budget variance (Level 0)
has the effect of increasing operating income relative to the budget amount. Favorable variance (F)
has the effect of decreasing operating income relative to the budget amount. Unfavorable variance (U)
Targets or standards are established for direct material and direct labor Standard Costing
Actual price and usage amounts are compared to the standard and variances are recorded. Standard Costing
Favorable variances are credits
unfavorable variances are debits
the continuous process of comparing the levels of performance in producing products and services against the best levels of performance in competing companies. Benchmarking
T of F? A favorable variance should be ignored by management FALSE
T of F? Information regarding the causes of variances is provided when the master budget is compared with actual results. FALSE
T of F? The flexible-budget variance may be the result of inaccurate forecasting of units sold. FALSE
T of F? An unfavorable variance is conclusive evidence of poor performance. FALSE
T of F? The direct manufacturing labor price variance is likely to be unfavorable if lower-skilled workers are put on a job. FALSE
T of F? A favorable variance can be automatically interpreted as "good news." FALSE
T of F? A particular variance generally signals one particular problem. FALSE
______ is the most difficult cost to manage, and is the least understood. Overhead
_______ variances involve taking differences between equations as the analysis moves back and forth between actual results and budgeted amounts Overhead
T of F? The variable overhead flexible-budget variance measures the difference between the actual variable overhead costs and the flexible-budget variable-overhead costs. TRUE
T of F? The variable overhead efficiency variance measures the efficiency with which the cost-allocation base is used. TRUE
T of F? An unfavorable variable overhead efficiency variance indicates that the company used more than planned of the cost-allocation base. TRUE
T or F? For fixed overhead costs, the flexible-budget amount is always the same as the static-budget amount. TRUE
T of F? The fixed overhead flexible-budget variance is the difference between actual fixed overhead costs and the fixed overhead costs in the flexible budget. TRUE
T of F? One way to manage both variable and fixed overhead costs is to eliminate value-adding activities. FALSE
T of F? The planning of fixed overhead costs does NOT differ from the planning of variable overhead costs. FALSE
T of F? Causes of a favorable variable overhead efficiency variance might include using lower-skilled workers than expected. FALSE
T of F? If the production planners set the budgeted machine hours standards too tight, one could anticipate there would be a favorable variable overhead efficiency variance. FALSE
T or F? Fixed costs may have a spending variance and/or an efficiency variance. FALSE
T of F? Fixed costs for the period are by definition a lump sum of costs that remain unchanged and therefore the fixed overhead spending variance is always zero. FALSE
T of F? The fixed overhead efficiency variance is the difference between actual fixed overhead costs and fixed overhead costs in the flexible budget. FALSE
T of F? Managers should use unitized fixed manufacturing overhead costs for planning and control. FALSE
T of F? At the end of the fiscal year, the fixed overhead spending variance is always prorated among work-in-process control, finished goods control, and cost of goods sold on the basis of the fixed overhead allocated to these accounts. FALSE
Created by: 1069331521
Popular Accounting sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards