Key Terms Flashcards
1
Q
Example of an adverse variance
A
Costs higher than budgeted
Income lower than budgeted
2
Q
What is a budget?
A
a financial plan for the future concerning the revenues and costs of a business
3
Q
Features of a tall hierarchy structure
A
many layers of hierarchy
narrow span of control
4
Q
Features of wide hierarchy structures
A
Few layers of hierarchy
Wide span of control
5
Q
What is an adverse variance?
A
A difference between actual and budgeted amounts which is bad for a business
