Flashcards in Standard Costing Deck (10):
Sets levels of cost / revenues which should be achievable with reasonable levels of efficiency.
A financial plan for a future period of time for costs and / or revenues based on a firms objectives.
The difference between budgeted and actual levels of cost / revenue.
A constituent part of a total variance. Add together to get total variance.
Has a negative effect on profit.
Has a positive effect on profit.
Material usage sub-variance
Material price sub-variance.
Direct labour sub-variances
Direct labour efficiency sub-variance
Direct labour rate sub-variance.
Check if actual output is different to budgeted output.
If so, replace budgeted output with actual output.
ONLY CHANGE SQ.