Flexible Budgets

difference between a company's revenues or costs projected in its static budget and the actual revenues or costs in the flexible budget

factor that causes a company to spend money because it affects volume or activity levels, or both

raw goods that can be traced directly to, or easily identified with, a specific product

difference between the actual cost of the items used to create a product and the standard cost of those items

difference between the actual amount of items used to create a product and the standard amount that a company expected to use

budget that computes planned costs and revenues by analyzing the actual level of output in the same period

difference between the calculations from the flexible budget analysis and a company's actual results for the period

difference between the amount a company actually spent on workers and its standard or projected amount spent on workers

difference between a company's actual time used for production and the standard or projected time

when management concentrates its efforts on areas of concern that are not operating as anticipated and spends less time on areas that it more accurately predicted

difference between the amount a company actually spent on overhead expenses and the amount it predicted it would spend

difference between the actual overhead expenses needed for production and the standard or projected overhead expenses

difference between the amount of sales a company expected to realize within the budget period and the amount of sales it actually realized

proportion of different products or services, which usually vary in profitability, that make up a company's total sales

difference between how much a company expects to spend in a budget period and how much it actually spends

company's budgeted figure that it uses for planning and long-term goals, such as cost or quantity, based on specific circumstances

financial plan that uses predicted or estimated expenses that are fixed (they do not change with the level of actual activity)

difference between a company's projected needs and expenses for production as indicated in a static budget and the company's actual needs and expenses

expense that increases or decreases with the level of production

study of the difference between a company's standard or predicted performance and its actual performance during a specific budget period