Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
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
Normal Size Small Size show me how
Accounting Exam 3
Vocabulary and the like Modules 14-18
| Question | Answer |
|---|---|
| Budget | A detailed plan for the future that is usually expressed in formal quantitative terms. |
| Budget Committee | A group of key managers who are responsible for overall budgeting policy and for coordinating the preparation of the budget. |
| Cash Budget | A detailed plan showing how cash resources will be acquired and used over a specific time period. |
| Control | The process of gathering feedback to ensure that a plan is being properly executed or modified as circumstances change. |
| Direct Labor Budget | A detailed plan that shows the direct labor-hours required to fulfill the production budget. |
| Direct Materials budget | A detailed plan showing the amount of raw materials that must be purchased to fulfill the production budget and to provide for adequate inventories. |
| Ending Finished goods inventory budget | A budget showing the dollar amount of unsold finished goods inventory that will appear on the ending balance sheet is what budget? |
| Manufacturing Overhead Budget | A detailed plan showing the production costs, other than direct materials and direct labor, that will be incurred over a specified time period. |
| Master Budget | A number of seperate but interdependent budgets that formally lay out the company's sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet. |
| Merchandise purchases budget | A detailed plan used by merchandising company that shows the amount of goods that must be purchased from suppliers during the period. |
| Participative Budget (Self-Imposed Budget) | A method of preparing budgets in which managers prepare their own budgets. THese budgets are then reviewed by higher-level managers, and any issues are resolved by mutual agreement. |
| Continuous Budget (Perpetual Budget) | A 12-month budget that rolls forward one month as the current month is completed. |
| Planning | Develop goals and prepare budgets to achieve those goals. |
| Production Budget | A detailed plan showing the number of units that must be produced during a period in order to satisfy both sales and inventory needs. |
| Responsibility Accounting. | A system of accountability in which managers are hold responsible for those items of revenue and cost- and only those items- over which they can exert significant control. The managers are held responsible for differences b/w budgeted and actual results. |
| Sales Budget | A detailed schedule showing expected sales expressed in both dollars and units. |
| Selling and Administrative expense budget | A detailed schedule of planned expenses that will be incurred in areas other than manufacturing during a budget period. |
| Activity Variance | The difference b/w a rev. or cost item in the static planning budget and the same item in the flex budget.An activity variance is due solely to the diff. b/w the level of act. assumed in the planning budget and the A level of act. used in the flex budget. |
| The Flexible budget | A report showing estimates of what revenues and cost should have been, given the actual level of activity for the period. |
| Planning Budget | A budget created at the beginning of the budgeting period that is valid only for the planned level of activity. |
| Revenue Variance | The difference b/w how much the rev. should have been, given the A level of activity, and A revenue for the period. A Favorable (unfavorable) rev. variance occurs b/c the rev. is higher(lower) than expected, given the A level of activity for the period. |
| Spending Variance | The difference b/w how much a cost should have been, given the actual level of activity, and the actual amount of the cost. A Fav(Unf) spending variance occurs b/c the cost is lower(higher) than expected, given the actual level of activity for the period. |
| Ideal Standards | Standards that assume peak efficiency at all times |
| Labor efficiency variance | The difference b/w the actual hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate. |
| Labor rate variance | The difference b/w the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period. |
| Management by exception | A management system in which standards are set for various activities, with actual results compared to these standards. Significant deviations from standards are flagged as exceptions. |
| Materials price variance | The difference b/w the actual unit price paid for an item and the standard price, multiplied by the quantity purchased. |
| Materials quantity variance | The difference b/w the actual quantity of materials used in production and the standard quantity allowed for the actual output, multiplied by the standard price per unit of materials. |
| Practical standards | Standards that allow for normal machine downtime and other work interruptions and that can be attained through reasonable, though highly efficient, efforts by the average worker. |
| Price Variance | 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. |
| Quantity variance | A variance that is computed by taking the difference b/w the actual quantity of the input used and the amount of the input that should have been used for the actual level of output and multiplying the result by the standard price of the input. |
| Standard Cost Card | A detailed listing of the standard amount of inputs and their costs that are required to produce one unit of a specific product. |
| Standard cost per unit | The standard quantity allowed of an input per unit of a specific product, multiplied by the standard price of the input. |
| Standard Hours Allowed | The time that should have been taken to complete the period's output. It is computed by multiplying the actual number of units produced by the standard hours per unit. |
| Standard Hours per unit | 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. |
| Standard Price Per Unit | The price that should be paid for an input. |
| Standard quantity allowed | The amount of an input that should have been used to complete the period's actual output. It is computed by multiplying the actual number of units produced by the standard quantity per unit. |
| Standard quantity per unit | The amount of an input that should be required to complete a single unit of product, including allowances for normal waste, spoilage, rejects, and other normal inefficiencies. |
| Standard rate per hour | The labor rate that should be incurred per hour of labor time, including employment taxes and fringe benefits. |
| Variable Overhead Efficiency variance | The difference between the actual level of activity (direct labor-hours, machine-hours, or some other base) and the standard activity allowed, multiplied by the variable part of the predetermined overhead rate. |
| Variable overhead rate variance | 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. |
Created by:
drummerboy1050
Popular Accounting sets