Chapter8

Chapter8 - CHAPTER 8 Flexible Budgets, Overhead Cost...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 8 Flexible Budgets, Overhead Cost Variances, and Management Control
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter Map 2
Background image of page 2
Planning Overhead Variable Overhead: as efficiently as possible, plan only essential activities Fixed Overhead: as efficiently as possible, plan only essential activities, especially since fixed costs are predetermined well before the budget period begins 3
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Overhead Variances Overhead is the most difficult cost to manage, and is the least understood Overhead variances involve taking differences between equations as the analysis moves back and forth between actual results and budgeted amounts 4
Background image of page 4
Overhead Cost Rates 1. Choose the period to be used for the budget 2. Select the cost-allocation bases to use in allocating variable overhead costs to output produced 3. Identify the variable overhead costs associated with each cost-allocation base 4. Compute the rate per unit of each cost-allocation base used to allocate variable overhead costs to output produced
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/10/2011 for the course ACCT 4121 taught by Professor Liu during the Fall '10 term at LSU.

Page1 / 19

Chapter8 - CHAPTER 8 Flexible Budgets, Overhead Cost...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online