Chapter 7 - Flexible Budgets, Direct Cost Variance & Management Control Flashcards
1
Q
What is variance?
A
The difference between actual results and expected performance.
2
Q
What is budgeted Performance
A
Expected performance or a point of reference to compare actual results
3
Q
What is management by exception?
A
A practice whereby managers focus more closely on areas that are not operating as expected and less closely on areas that are.
