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Basic standard |
The standard that remains unaltered for many years ad so does not represent current conditions |
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Batch |
A cost unit which contains a group of identical products |
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Batch costing |
A method of costing which is used where products are made in batches containing a number of identical products |
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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 |
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Break-even point |
Is the level at which neither profit nor loss is made |
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Budget |
A plan of action expressed in financial terms |
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Budget manual |
A procedure and reference book for those involved in budgeting |
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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 |
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Budget period |
The period for which a budget is prepared |
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Budget revision variance |
The difference between original and revised standards multiplied by the budgeted quantity |
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Budgetary control |
Involves the setting of budgets and the continuous comparison of actual results against budgets |
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Budgeted costs |
Future costs |
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By-product |
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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