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CPA > Management Accounting 21 - Variance Analysis > Flashcards

Management Accounting 21 - Variance Analysis Flashcards

1
Q

Cost Variances

A

AQ = actual volume of units = actual quantity (unit)
AP = actual price per unit of output = actual price
SQ = standard (budgeted) volume of units = standard quantity (unit)
SP = standard (budgeted) price per unit of output = standard price
ATQ = actual total units of input
AM% = actual mix percentage
STQ = standard total units of input allowed for actual output
SM% = standard mix percentage

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2
Q

Actual results

A

Actual results = (AQ × AP)
AQ = actual volume of units = actual quantity (unit)
AP = actual price per unit of output = actual price

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3
Q

Flexible budget

A

Flexible budget = Midpoint = (AQ × SP)
Flexible budget = (SQ for actual output × SP)
AQ = actual volume of units = actual quantity (unit)
SP = standard (budgeted) price per unit of output = standard price
SQ = standard (budgeted) volume of units = standard quantity (unit)

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4
Q

Static budgets

A

Static budgets = (SQ × SP)
SQ = standard (budgeted) volume of units = standard quantity (unit)
SP = standard (budgeted) price per unit of output = standard price

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5
Q

Static budget variance

A

Static budget variance = (SQ × SP) – (AQ × AP)
Static budget variance = flexible budget variance + sales volume variance
SQ = standard (budgeted) volume of units = standard quantity (unit)
SP = standard (budgeted) price per unit of output = standard price
AQ = actual volume of units = actual quantity (unit)
AP = actual price per unit of output = actual price

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6
Q

Flexible budget variance

A

Flexible budget variance = Selling price variance = (AP – SP) × AQ
Flexible budget variance = rate variance + efficiency variance
AP = actual price per unit of output = actual price
SP = standard (budgeted) price per unit of output = standard price
AQ = actual volume of units = actual quantity (unit)

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7
Q

Sales volume variance

A

Sales volume variance = (AQ – SQ) × SP
AQ = actual volume of units = actual quantity (unit)
SQ = standard (budgeted) volume of units = standard quantity (unit)
SP = standard (budgeted) price per unit of output = standard price

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8
Q

Rate variance

A

Rate variance = (AP – SP) × AQ
rate variance = Flexible budget variance - efficiency variance
AP = actual price per unit of output = actual price
SP = standard (budgeted) price per unit of output = standard price
AQ = actual volume of units = actual quantity (unit)

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9
Q

Efficiency variance

A

Efficiency variance = (AQ – SQ for actual output) × SP
efficiency variance = rate variance + Flexible budget variance
AQ = actual volume of units = actual quantity (unit)
SQ = standard (budgeted) volume of units = standard quantity (unit)
SP = standard (budgeted) price per unit of output = standard price

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10
Q

Mix and yield variances

A
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11
Q

Midpoint 1

A

Midpoint 1 = (AQ × SP = ATQ × AM% × SP)
AQ = actual quantity
SP = standard price
ATQ = actual total units of input
AM% = actual mix percentage

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12
Q

Midpoint 2

A

Midpoint 2 = (ATQ × SM% × SP)
ATQ = actual total units of input
SM% = standard mix percentage
SP = standard price

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13
Q

Flexible budget

A

Flexible budget = (STQ × SM% × SP)
STQ = standard total units of input allowed for actual output
SM% = standard mix percentage
SP = standard price

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14
Q

Mix variance

A

Mix variance = ATQ × (AM% – SM%) × SP
ATQ = actual total units of input
AM% = actual mix percentage
SM% = standard mix percentage
SP = standard price

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15
Q

Yield variance

A

Yield variance = (ATQ – STQ) × SM% × SP
ATQ = actual total units of input
STQ = standard total units of input allowed for actual output
SM% = standard mix percentage
SP = standard price

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16
Q

Fixed manufacturing overhead variance

A

Actual fixed overhead
Static budget (equals flexible budget) = Budgeted quantity produced at standard overhead rate
Fixed overhead applied = Actual quantity produced at standard overhead rate
Fixed overhead variance
Fixed overhead spending variance
Production volume variance (also called fixed cost volume variance)
Fixed manufacturing overhead spending variance = actual fixed manufacturing overhead – budgeted fixed manufacturing overhead
Fixed manufacturing overhead production volume variance = budgeted fixed manufacturing overhead – applied fixed manufacturing overhead

17
Q

Revenue variance

18
Q

Actual results

A

Actual results = Actual units (total) × Actual sales mix × Actual CM per unit

19
Q

Flexible budgets

A

Flexible budgets = Actual units (total) × Actual sales mix × Budgeted CM per unit

20
Q

Midpoint

A

Midpoint = Actual units (total) × Budgeted sales mix × Budgeted CM per unit

21
Q

Static budgets

A

Static budgets = Budgeted units (total) × Budgeted sales mix × Budgeted CM per unit

22
Q

Static budget CM variance

23
Q

Flexible budget CM variance

24
Q

Sales volume variance (in CM)

A

Sales volume variance (in CM) = (AQ – SQ) × BCM
AQ = actual quantity
SQ = standard quantity
BCM = budget contribution margin

25
Q

Sales mix variance (in CM)

A

Sales mix variance (in CM) = ATQ × (AM% – BM%) × BCM
ATQ = actual total units of input
AM% = actual mix percentage
BM% = budget mix percentage
BCM = budget contribution margin

26
Q

Sales mix variance (for each product)

A

Sales mix variance (for each product) = (actual sales mix % – budgeted sales mix %) × (actual units of all products sold × budgeted contribution margin per unit)

27
Q

Sales quantity variance (in CM)

A

Sales quantity variance (in CM) = (ATQ – STQ) × BM% × BCM
ATQ = actual total units of input
STQ = standard total units of input allowed for actual output
BM% = budget mix percentage
BCM = budget contribution margin

28
Q

Sales quantity variance

A

Sales quantity variance = (actual units of all products sold – budgeted units of all products sold) × budgeted average contribution margin per unit

29
Q

Budgeted average contribution margin per unit

A

Budgeted average contribution margin per unit = sum of budgeted sales mix % × budgeted con-tribution margin per unit for all products (BACM = BM% × BCM)

30
Q

market share and market size
Total sales quantity

A

Total sales quantity = market size × market share

31
Q

Midpoint 1

A

Midpoint 1 = ATQ × BACM = Actual market size (AMSZ) × Actual market share (AMSh) ×
Budgeted average CM (BACM)

32
Q

Midpoint 2

A

Midpoint 2 = Actual market size (AMSZ) × Budgeted market share (BMSh) × Budgeted average CM (BACM)

33
Q

Static budgets

A

Static budgets = STQ × BACM = Budgeted market size (BMSZ) × Budgeted market share (BMSh) × Budgeted average CM (BACM)

34
Q

Market share variance (in CM)

A

Market share variance (in CM) = (AMSh% – BMSh%) × AMSZ × BACM

35
Q

Market size variance (in CM)

A

Market size variance (in CM) = (AMSZ – BMSZ) × BMSh% × BACM

CPA (9 decks)

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