Why and How
The concept that a manager should be held responsible for for those items - and only those items - that the manager can actually control to a significant extent.
What is responsibility accounting?
This is a detailed schedule showing the expected sales for a period.
What is a sales budget?
This is one portion of the variance analysis cycle (6 possible answers).
What is to...
1) Prepare Performance Report
2) Analyze Variances
3) Raise Questions
4) Identify Root Causes
5) Take Actions
6) Conduct next period's operations
This is the difference between what revenue was and should have been, based on actual activity levels.
What is a revenue variance?
Who is the Speaker of the House?
It is a twelve-month budget that rolls forward one month as the current month is completed.
What is a perpetual (or continuous) budget?
This lists the number of units that will need to be produced in order to satisfy sales needs.
What is a production budget?
This is a management system that only flags significant budget deviations for management.
What is management by exception?
These are the two descriptive words applied to a given variance. Only one word would be applied to each variance.
What are favorable and unfavorable?
The number of letters in the Greek alphabet.
What is 24?
This involves gathering feedback to ensure that the plan is being properly executed.
What is control?
This lists all costs of production other than direct materials and direct labor.
What is the manufacturing overhead budget?
This is a budget prepared before the period begins, that is only valid for a specific activity level.
What is a planning budget?
This defines the amount of material that should be used for each unit of finished product.
What is the standard quantity per unit?
The number of future U.S. presidents who signed the Declaration of Independence.
What is 2? (John Adams and Thomas Jefferson)
This is a budget that is prepared with the full cooperation and participation of managers at all levels.
What is a self-imposed (or participative) budget?
This shows the amount of goods that must be purchased from suppliers during the period.
What is a merchandise purchases budget?
This is an estimate of what costs and expenses should have been, given the actual level of activity.
What is a flexible budget?
This document shows the standard quantity (or hours) and standard price (or rate) of the inputs required to produce a unit of a specified product.
What is a standard cost card?
An organism that eats both plants and animals.
What is an omnivore?
They are incentives that are often based on meeting and/or exceeding budgets.
What are bonuses?
These two statements are the culmination of the Master Budget.
What are the budgeted income statement and budgeted balance sheet?
This is the term used in a planning budget instead of "sales".
What is revenue?
This equals actual output multiplied by standard quantity per unit.
What is standard quantity allowed?
The member of The Beatles that was born first.
Who is Ringo Starr?