Term
|
Definition
| benchmark or norm for measuring performance. |
|
|
Term
|
Definition
| specify how much of an input should be used to make a product or provide a service. Ex. How much ingredients go into a mcdonalds sandwich. |
|
|
Term
|
Definition
| specify how much should be paid for each unit of the input. Ex. Construction companies have standard labor costs they apply to sub-contractors. |
|
|
Term
|
Definition
| system of management in which standards are set for various operating activities, with actual results compared to these standards. Any deviations that are deemed significant are brought to the attention of management as "exceptions". |
|
|
Term
|
Definition
1. The cycle begins with the preparation of standard cost performance reports in the accounting department.
2. These reports highlight variances which are differences between actual results and what should have occurred.
3. The variances raise questions such as: Why did this occur? Why is this variance larger than it was last period?
4. The significant variances are investigated to discover their root causes.
5. Corrective actions are taken
6. Next period's operations are carried out and the process is repeated. |
|
|
Term
|
Definition
| can only be attained under the best of circumstances. They allow for no work interruptions and the require employees to work at 100% peak efficiency all of the time. |
|
|
Term
|
Definition
| tight but attainable. The allow for normal machine downtime and employee rest periods and can be attained through reasonable, highly efficient efforts by the average worker |
|
|
Term
|
Definition
| should reflect the final, delivered cost of the materials, net of any discounts taken. |
|
|
Term
| Standard quantity per unit |
|
Definition
| for direct materials should reflect the amount of material required for each unit of finished product, as well as an allowance for unavoidable waster, spoilage, and other normal inefficiencies. |
|
|
Term
|
Definition
| for direct labor. includes not only wages earned but also fringe benefits and other labor costs. A "single rate" (applicable to all same level employees) |
|
|
Term
|
Definition
| reflects the labor hours required to complete one unit of a product. |
|
|
Term
|
Definition
| a detailed listing of the standard amounts of direct materials, direct labor, and variable overhead inputs that go into a unit of product, multiplied by the standard price or rate that has been set for each input |
|
|
Term
|
Definition
| There is a shit ton of stuff on the study guide not in these flashcards. |
|
|
