GLOSSARY of Costing & Management Accounting Terms-Alphabet V
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Value added |
Sales revenue less bought out goods and services. It measure the wealth created by the workforce |
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Value analysis |
A systematic and analytical technique of analyzing all aspects of a product in order to determine whether costs can be reduced without affecting the quality. |
| Variable budget | Refers to as flexible budget |
| Variable costing | Refers to direct or marginal costing |
| Variable costs | Costs that vary directly with the level of activity |
| Variable overhead efficiency variance | The difference between the variable overhead incurred and the amount of variable overhead that should have been incurred for the actual hours worked |
| Variable overhead expenditure variance | The difference between actual hours worked and the standard hours in actual output multiplied by the standard overhead rate. |
| Variance | The difference between actual results and planned results |
| Variance analysis | The investigation and classification of variances. The variances are analyzed into constituent parts so that corrective actions can be taken and responsibility pinpointed. |
| Volume | Level of activity. It has a significant effect on the amount of costs. It can be measured in units, hours,etc. |
Related Posts
- Formulas-Standard Costing
- Standard Costing-Labor Variance
- Standard Costing And Variance Analysis
- Standard Costing-Total Direct Material Variance
- What Is Flexible Budget? What is the difference between flexible and fixed budget? In what situations, flexible budgeting is useful or being used? What are the steps involved when preparing flexible budget?
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