1. Match cach of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between total overhead cost that 1. Cost Variance would have been expected if the actual operating volume had been 2. Volume Variance accurately predicted and the amount of overhead cost that was allocated to 3. Price Variance 4. Quantity Variance products using the predetermined standard overhead rate. 5. Standard Costs A planning budget based on a single predicted amount of sales or production volume; unsuitable for evaluations if the actual volume differs from the 6. Fixed Budget 7. Flexible Budget 8. Variance Analysis predicted volume. The difference between the overhead costs that were actually incurred and the overhead budget at the actual operating level. A process of examining the differences between actual and budgeted revenues or costs and describing them in terms of the amounts that resulted from price and quantity differences. The difference between actual and budgeted revenues or costs caused by the difference between the actual dollars generated or spent per unit and the budgeted dollars per unit.
1. Match cach of the following terms with the appropriate definition. The difference between actual and budgeted revenue or cost caused by the difference between the actual number of units sold or used and the budgeted number of units. A budget prepared after an operating period is complete in order to help managers evaluate past performance; uses fixed and variable costs in determining total costs. The costs that should be incurred under normal conditions to produce a specific product or to perform a specific service. The difference between total overhead cost that 1. Cost Variance would have been expected if the actual operating volume had been 2. Volume Variance accurately predicted and the amount of overhead cost that was allocated to 3. Price Variance 4. Quantity Variance products using the predetermined standard overhead rate. 5. Standard Costs A planning budget based on a single predicted amount of sales or production volume; unsuitable for evaluations if the actual volume differs from the 6. Fixed Budget 7. Flexible Budget 8. Variance Analysis predicted volume. The difference between the overhead costs that were actually incurred and the overhead budget at the actual operating level. A process of examining the differences between actual and budgeted revenues or costs and describing them in terms of the amounts that resulted from price and quantity differences. The difference between actual and budgeted revenues or costs caused by the difference between the actual dollars generated or spent per unit and the budgeted dollars per unit.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Question
Transcribed Image Text:1. Match each of the following terms with the appropriate definition.
The difference between
actual and budgeted
revenue or cost caused by
the difference between the
actual number of units sold
or used and the budgeted
number of units.
A budget prepared after an
operating period is
complete in order to help
managers evaluate past
performance; uses fixed
and variable costs in
determining total costs.
The costs that should be
incurred under normal
conditions to produce a
specific product or to
perform a specific service.
The difference between
1. Cost Variance
total overhead cost that
would have been expected
if the actual operating
2. Volume Variance
volume had been
accurately predicted and
3. Price Variance
the amount of overhead
cost that was allocated to
products using the
predetermined standard
overhead rate.
4. Quantity Variance
5. Standard Costs
A planning budget based on
a single predicted amount
6. Fixed Budget
of sales or production
volume; unsuitable for
7. Flexible Budget
evaluations if the actual
8. Variance Analysis
volume differs from the
predicted volume.
The difference between the
overhead costs that were
actually incurred and the
overhead budget at the
actual operating level.
A process of examining the
differences between actual
and budgeted revenues or
costs and describing them
in terms of the amounts
that resulted from price
and quantity differences.
The difference between
actual and budgeted
revenues or costs caused
by the difference between
the actual dollars generated
or spent per unit and the
budgeted dollars per unit.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education