TERM 1
Efficiency Variance
DEFINITION 1
Measures whether the quantity of materials or labor used to
make the actual number of outputs is within the standard
allowed for that number of outputs.
TERM 2
Flexible Budget
DEFINITION 2
A summarized budget prepared for different levels of volume
TERM 3
Flexible Budget Variance
DEFINITION 3
The difference arising because the company actually earned
more or less revenue or incurred more or less cost than
expected for the actual level of output.
TERM 4
Overhead Flexible Budget Variance
DEFINITION 4
The difference between the actual overhead cost and the
flexible budget overhead for the actual number of outputs.
TERM 5
Price Variance
DEFINITION 5
The difference in prices (actual price per unit minus standard
price per unit) of an input multiplied by the actual quantity of
the input.
