GLOSSARY of Costing & Management Accounting Terms –Alphabet S


Sales allowance variance

The difference between the actual sales allowance and the standard allowance multiplied by the quantity sold

Sales contribution variance

The difference between the actual contribution and the budgeted contribution

Sales margin variance

The difference between actual profit and budgeted profit

Sale price variance

The difference between the actual selling price and the standard selling price multiplied by actual quantity sold.

Sales value variance

The difference between the actual sales value and the budgeted sales value.

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.


Materials or residue that cannot be used for it original purpose.

Semi-fixed (variable) costs

Costs that are affected to an extent by the increases or decreases in the level of activity

Selling and distribution costs

Costs that are incurred in securing orders, in advertising and promoting and in delivering

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.

Service department

A section in an organization that provides services to the production departments


Those that cannot be used for its intended purpose. It is a form of scrap.

Split off point

The point in the production process where products with common costs are separated.

Standard cost

Predetermined costs that are calculated in advance of actual production and based on a specification of all relevant factors

Standard cost card/sheet

A basic document for the accumulation of standard cost of a unit or batch of product

Standard costing

The method of ascertaining standard costs of products and services. It involves comparing standard cost with actual cost

Standard hour

The quantity of output which should be produced in one clock hour

Standard price

Predetermined price

Standard selling price

Predetermined selling price

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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