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Chapters 7 & 8 Concept Review

Teacher: Professor Glenda Evans
Across
Detailed schedule showing expected sales
Developing goods and preparing budgets to achieve those goals
This variance measures the difference between actual price per unit of an input and its standard price, multiplied by actual quantity purchased
Variance occurs when actual price was less than the standard price.
12-month budget that rolls forward
Management system that compares actual results to a budget so that significant deviations can be flagged as exceptions and investigated further.
Budget outlines the amount of raw materials that must be purchased to fulfill the production budget
This budget estimates what revenues and costs should have been, given the actual level of activity for the period.
Composed of four sections-receipts, disbursements, excess or deficiency, and financing.
Budgets define goals and objectives that serve as ________ for evaluating performance.
System of accountability in which managers are held responsible for revenue and cost
Variance(difference) between how much a cost should have been and actual amount of cost.
Down
Calculated by taking the difference between actual quantity of input used and the amount of input that should have been used.
Number of separate but interdependent budgets that formally lay out all company's budgets
Prepared before the period begins
This budgeted financial statement constructed using data from several other budgets.
Variance occurs when amount actually spent exceeded the amount that should have been spent.
Variance (difference) between what total revenue should have been and actual total revenue.
Quantitative plan for acquiring and using resources over a specified time period