ACCT 2
What costs and revenues should be for the actual level of activity is shown on an ______ budget.
flexible
The difference between the actual and the standard direct labor hourly rates is reflected in the __________ ___________ variance.
labor rate
The purchasing manager is generally responsible for the ________ variance.
price
The purchasing manager is usually responsible for the material ______ variance, and the production manager is usually responsible for the material ________ variance.
price, quantity
If poor-quality materials result in excessive labor processing time, the _______ manager will probably be held responsible for the labor efficiency variance.
purchasing
How much input should be used to produce a product or provide a service is a _____ standard.
quantity
SP(AQ-SQ) is the formula for the materials _____ variance.
quantity
The production manager is generally responsible for the _______ variance.
quantity
The difference between the amount of an input used and the amount that should have been used, all evaluated at the standard price of the input is _______ variance.
quantity T
To calculate the quantity variance, multiply the _______ quantity times the standard price and compare it standard quantity allowed times the _____ price.
actual, standard
The variance analysis begins with:
begins with the preparation of performance reports
A cost center's performance report does not include:
costs but does include: revenue, variances, net operating income
an unchanged planning budget is known as a(n) __ planning budget.
static
labor efficiency variance
SR(AH-SH)
When the actual hourly rate is lower than the standard hourly rate, the labor rate variance is _________.
favorable
Comparing actual costs to static planning budget costs only makes sense if the costs are:
fixed
The difference between how much a cost should have been, given the actual level of activity, and the actual amount of the cost is a ________ variance.
spending
How much should be paid for an input is indicated by a price ________.
standard
How much should be paid for input is indicated by a price _______.
standard
The amount of an input that should have been used to produce the actual output is known as the _____ quantity or hours allowed.
standard
The amount of direct-labor hours that should be used to produce one unit of finished is the ______ hours per unit.
standard
Planning budgets are sometimes called __________ budgets
static
A budget that takes into account how costs are affected by changes in level of activity is a(n) ___ budget.
flexible
The standard rate per hour includes:
fringe benefits, employment taxes, the direct labor rate per hour
The difference between what the total sales should have, given the actual level activity for the period, and the actual total sales is a _______ variance.
revenue
One option to generate a favorable _________ variance for net operating income is to increase the number of clients.
activity