Term
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Definition
| the difference between a revenue or cost item in the static planning budget and the same item in the flexible budget. An activity variance is due solely to the difference between the level of activity assumed in the planning budget and the actual level of activity used in the flexible budget. |
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Term
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Definition
| A report showing estimates of what revenues and costs should have been, given the actual level of activity. |
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Term
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Definition
| A budget created at the beginning of the budgeting period that is valid only for the planned level of activity. |
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Term
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Definition
| The difference between how much the revenue should have been, given the actual level of activity, and the actual revenue for the period. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period. |
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Term
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Definition
| the difference between how much a cost should have been, given the actual level of a activity, and the actual amount of the cost. A favorable (unfavorable) spending variance occurs because the cost is lower (higher) than expected, given the actual level of activity for the period. |
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Term
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Definition
| The elapsed time from receipt of a customer order to when the completed goods are shipped to the customer |
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Term
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Definition
| standards that assume peak efficiency at all times |
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Term
| Labor Efficiency Variance |
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Definition
| the difference between the actual hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate |
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Term
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Definition
| the difference between the actual hourly labor rate and the standard rate, multiplied by the number of hours worked during the period. |
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Term
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Definition
| 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 |
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Term
| manufacturing cycle efficiency (MCE) |
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Definition
| process (value-added) time as a percentage of through put time |
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Term
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Definition
| the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased |
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Term
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Definition
| the difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased |
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Term
| materials quantity variance |
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Definition
| the differences between the actual quantity of the materials used in production and the standard quality allowed for the actual output, multiplied by the standard price per unit of materials |
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Term
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Definition
| 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 |
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Term
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Definition
| 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 |
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Term
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Definition
| 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 and multiplying the result by the standard price of the input |
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Term
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Definition
| a detailed listing of the standard amounts of inputs and their costs that are required to produce a unit of a specific product |
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Term
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Definition
| standard quantity allowed of a specific product multiplied by the standard price of the input |
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Term
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Definition
| the time that should have been taken to complete the periods output. it is computed by multiplying the actual number of units produced by the standard hours per unit |
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Term
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Definition
| 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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Term
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Definition
| the price that should be paid for an input . the price should be net of discounts and should include any shipping costs |
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Term
| standard quantity allowed |
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Definition
| 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 |
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Term
| standard quantity per unit |
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Definition
| 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 |
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Term
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Definition
| the labor rate that should be incurred per hour of labor time, including employment taxes and fringe benefits |
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Term
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Definition
| the amount of time required to turn raw materials into completed products. |
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Term
| variable overhead efficiency variance |
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Definition
| 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 |
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Term
| variable overhead rate variance |
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Definition
| 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 |
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Term
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Definition
| the difference between the actual fixed overhead costs incurred and the budgeted fixed overhead costs in the flexible budget |
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Term
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Definition
| the level of activity used to compute the predetermined overhead rate |
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Term
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Definition
| the variance that 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. it is computed by multiplying the fixed component of the predetermined overhead rate. it is computed by multiplying the fixed component of the predetermined overhead rate by the difference between the denominator hours and the standard hours allowed for the actual output |
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