Key Terms - Chapter 21

Key Terms - Chapter 21 - Budget report Report comparing...

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Budget report- Report comparing actual results to planned objectives; sometimes used as a progress report. Budgetary control- Management use of budgets to monitor and control company operations. Controllable variance- Combination of both overhead spending variances (variable and fixed) and the variable overhead efficiency variance. Cost variance- Difference between the actual incurred cost and the standard cost. Efficiency variance- Difference between the actual quantity of an input and the standard quantity of that input. Favorable variance- Difference in actual revenues or expenses from the budgeted amount that contributes to a higher income. Fixed budget- Planning budget based on a single predicted amount of volume; unsuitable for evaluations if the actual volume differs from predicted volume. Fixed budget performance report- Report that compares actual revenues and costs with fixed budgeted amounts and identifies the differences as favorable or unfavorable variances. Flexible budget-
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