Flashcards
Advanced Cost Chapter 9
Cards in this deck (6)
- 1Activity varianceThe difference between a revenue or cost item in the flexible budget and the same item in the static planning budget. An activity variance is due solely to the difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.
- 2Flexible budgetA report showing estimates of what revenues and costs should have been, given the actual level of activity for the period.
- 3Management by exceptionA management system in which actual results are compared to a budget. Significant deviations from the budget are flagged as exceptions and investigated further.
- 4Planning budgetA budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
- 5Revenue varianceThe difference between the actual revenue for the period and how much the revenue should have been, given the actual level of activity. A favorable (unfavorable) revenue variance occurs because the revenue is higher (lower) than expected, given the actual level of activity for the period.
- 6Spending varianceThe difference between the actual amount of the cost and how much the cost should have been, given the actual level of activity. A favorable (unfavorable) spending variance occurs because the cost is lower (higher) than expected, given the actual level of activity for the period.
Information
- Description
- Accounting Flashcards on Advanced Cost Chapter 9, created by Katina Van Cleave on 10/10/2022.
- Created by
- Katina Van Cleave
- Views
- 2
- Rating