GLOSSARY of Costing & Management Accounting Terms –Alphabet B


Basic standard

The standard that remains unaltered for many years ad so does not represent current conditions


A cost unit which contains a group of identical products

Batch costing

A method of costing which is used where products are made in batches containing a number of identical products

Bill of materials

This is an itemization of the parts and subassemblies required to create a product, frequently including assumed scrap rates that will arise as part of the production process

Break-even point

Is the level at which neither profit nor loss is made


A plan of action expressed in financial terms

Budget manual

A procedure and reference book for those involved in budgeting

Budget cost centre

An organization is divided into sections for budgeting purposes and to facilitate control. They may be a cost centre or a group of cost centres

Budget period

The period for which a budget is prepared

Budget revision variance

The difference between original and revised standards multiplied by the budgeted quantity

Budgetary control

Involves the setting of budgets and the continuous comparison of actual results against budgets

Budgeted costs

Future costs


This is a product that is an ancillary part of the primary production process, having a minor resale value in comparison to the value of the primary product being manufactured. Any proceeds from the sale of a by-product are typically offset against the cost of the primary product, or recorded as miscellaneous revenue.

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