Standard Information
Who/What/Why
Is It Material?
Measurements
Two/Three/Four Variance Methods/Other Stuff
100
Costs that would be incurred under efficient operating conditions and are forecast before the manufacturing process begins.
What are standard costs?
100
Standard costs are determined for the three elements of cost (by the way...what are they?)
What is the first procedure that standard cost accounting is based on?
100
The amount measured or analyzed is significant enough to impact decision making. (this is an important general accounting concept)
What is Materiality anyway?
100
The (actual unit price of materials - the standard unit price of materials ) x ( the actual quantity of materials used). *** DAILY DOUBLE ***
What is a the formula for calculating a materials price variance?
100
This measures the difference between budgeted fixed overhead and the fixed overhead allocated to work in process.
What is the production-volume variance?
200
A cost system that uses predetermined standard costs for production inputs and which are compared to actual costs as a basis for efficiency measurements.
What is a standard cost system?
200
The difference between a set standard cost or measure and the actual cost or measure. ***DAILY DOUBLE***
What is a variance?
200
The effect of employees becoming more familiar and proficient at complex production processes as they perform them numerous times.
What is the learning effect?
200
The (actual quantity of materials used - the set standard quantity of materials allowed) x (the set standard for the unit price of material). *** DAILY DOUBLE***
What is the formula for calculating a materials usage (quantity) variance?
200
An overhead analysis method that breaks down the total variances into a flexible-budget variance and a production-volume variance.
What is the two-variance method?
300
Significant unfavorable/favorable differences between actual costs and efficiencies and their standards are measured and analyzed.
What is management by exception?
300
Significant variances are analyzed and investigated and appropriate action is taken.
What is the third procedure that standard cost accounting is based on?
300
Measures of quantity such as material used or labor hours worked that differ from the set standard .
What is a usage variance?
300
The (actual hourly rates paid - the set standard hourly rates allowed) x (the actual number of hours worked). ***DAILY DOUBLE***
What is the formula for calculating the labor rate (price) variance?
300
A common approach to recognizing the impact of material, labor, and overhead variances.
What is showing the variances as additions to or subtractions from Cost of Goods Sold?
400
A standard (a norm against which actual performance can be measured) set at the maximum degree of efficiency.
What is an ideal standard?
400
The first factor to consider when setting the standard cost for raw materials.
What is the trend of prices for raw materials?
400
Measures of cost differences such as the cost of material and/ or wage rates that differ from set standards.
What is a price variance?
400
The (number of actual hours worked - the set standard number of hours allowed) x the actual level of production at the set standard labor rate. ***DAILY DOUBLE***
What is the formula for calculating the labor efficiency (usage) variance?
400
An alternate materials variance that recognizes materials price variances at the time materials are purchased rather than when they are put into production.
What is a materials purchase price variance?
500
A standard set in a way that that recognizes factors such as lost time and normal waste and spoilage. ***DAILY DOUBLE***
What is an attainable standard?
500
Measuring business success by considering both financial and nonfinancial performance measures.
What is a balanced scorecard approach to measuring success?
500
Measurements companies track that are important but not financially based.
What are nonfinancial performance measures?
500
The 3 variances that make up the total manufacturing cost variance.
What are the Direct Materials Variance, Direct Labor Variance, and the Factory Overhead Variance?
500
The answer to the statement that a favorable variance is always be a good thing. ***DAILY DOUBLE***
What is NO, NO, NO ? (an example would be using less than the standard labor hours to produce a product which could result in poor quality of prodution).
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