chapter 9 vocab and concepts

Question 1

standard costs are what? think in terms of time

Answer 1

set at the beginning of the accounting period to reflect what management belives costs should be

Question 2

a standard cost system

Answer 2

intergrates specific standards into the managerial accounting system to help manegers plan a budget

Question 3

variances are what?

Answer 3

the difference between actual and budgeted or standard costs

Question 4

a flexible budget is key because it shows how?

Answer 4

how total costs are expected to change if actual production or sales are more or less than expected

Question 5

standard labor rate?

Answer 5

is the expected hourly cost of labor including employee taxes and benefits

Question 6

standard cost cards?

Answer 6

the summary of the standard costs that shows what the company should spend to make a single unit of product based on expected or anticipated production

Question 7

static budget?

Answer 7

a budget that is based on a single fixed or estimated series volume

Question 8

flexible budget?

Answer 8

shows how budgeted costs and revenues will change across different levels of volume

Question 9

price variance?

Answer 9

Compares the actual costs to what we should have paid for the actual quanity of input

Question 10

cost variance?

Answer 10

• The difference between a standard cost and actual cost