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Factory overhead |
These are all the costs incurred during the manufacturing process, minus the costs of direct labor and materials. |
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Financial ledger |
A book in which financial accounts are kept |
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First in first out |
The earliest materials purchased are used first. The price paid for those earliest materials is used to value or price the issue. |
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Fixed cost |
Cost that remains unaffected by changes in activity. |
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Fixed budget |
A budget prepared for a single level of activity. |
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Fixed overhead cost variance |
The difference between overhead absorbed and the overhead incurred. |
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Fixed overhead efficiency variance |
The difference between the actual hours worked and the standard hours multiplied by the standard absorption rate. |
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Fixed overhead expenditure variance |
The difference between the actual fixed overhead incurred and the budgeted fixed overhead |
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Fixed overhead volume variance |
The difference between the actual output and the budgeted output multiplied by the standard absorption rate |
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Flexible budget |
A budget prepared for a range of activity |
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Forecast |
Looking to the future and predicting which is likely to happen |
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Functional budgets |
Plans prepared for the various functions in an organization |
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Future cost |
Cost that is expected to be incurred at some future date |
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