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Sales allowance variance |
The difference between the actual sales allowance and the standard allowance multiplied by the quantity sold |
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Sales contribution variance |
The difference between the actual contribution and the budgeted contribution |
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Sales margin variance |
The difference between actual profit and budgeted profit |
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Sale price variance |
The difference between the actual selling price and the standard selling price multiplied by actual quantity sold. |
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Sales value variance |
The difference between the actual sales value and the budgeted sales value. |
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Sales volume variance |
The difference between the actual sales quantity and the budgeted sales quantity multiplied by the standard selling price or standard unit profit or standard unit contribution. |
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Scrap |
Materials or residue that cannot be used for it original purpose. |
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Semi-fixed (variable) costs |
Costs that are affected to an extent by the increases or decreases in the level of activity |
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Selling and distribution costs |
Costs that are incurred in securing orders, in advertising and promoting and in delivering |
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Service costing |
Applied where a service is provided by an organization or a service cost centre within the organization. The average cost of the unit of service is calculated by divided the total costs by the total services provided. |
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Service department |
A section in an organization that provides services to the production departments |
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Spoilage |
Those that cannot be used for its intended purpose. It is a form of scrap. |
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Split off point |
The point in the production process where products with common costs are separated. |
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Standard cost |
Predetermined costs that are calculated in advance of actual production and based on a specification of all relevant factors |
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Standard cost card/sheet |
A basic document for the accumulation of standard cost of a unit or batch of product |
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Standard costing |
The method of ascertaining standard costs of products and services. It involves comparing standard cost with actual cost |
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Standard hour |
The quantity of output which should be produced in one clock hour |
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Standard price |
Predetermined price |
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Standard selling price |
Predetermined selling price |
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Step costs |
Costs that remain fixed until a certain range of activity and then rise when the level of activity increases. |
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