Exam 5 Flashcards Preview

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Flashcards in Exam 5 Deck (14):
1

DM Price Var

(actual price- Std Price)* Actual Quantity

2

DL Rate Var

(Actual Rate-Std Rate) x Actual DL Hours

3

Var MOH Rate Var

(actual Rate- Std Rate) x Actual Hr

4

DM Quantity Var

(Actual Q- Std Q) x Std price

5

DL Eff Var

( Actual DLH- Std DLH) xStd DL rate

6

Var MOH Eff

(Actual HR- Std HR) x Std Rate

7

Advantages to STD

Cost Benchmark, Usefulness Budgeting, Motivation, Standard Costing systerm

8

Disadvantages to STD

Outdated standards, lack of timeliness, focus on operational, lean thinking, increase automation, unintended behavior

9

Steps

Identify, analyze, engage, perform

10

Payback period

initial investment/ annual net cash inflow

11

ARR

Avg annual Op Inc/ Initial investment

12

NPV

PV of future net cash inflows- initial investment

13

Profitability Index

Present Value of future net cash inflows/ initial investment

14

IRR (only formula given but not IRR)

Initial investment/ principle= Factor (n,i)