|RETURN TO GLOSSARY INDEX
|Sales revenue less bought out goods and services. It measure the wealth created by the workforce
|A systematic and analytical technique of analyzing all aspects of a product in order to determine whether costs can be reduced without affecting the quality.
|Refers to as flexible budget
|Refers to direct or marginal costing
|Costs that vary directly with the level of activity
|Variable overhead efficiency variance
|The difference between the variable overhead incurred and the amount of variable overhead that should have been incurred for the actual hours worked
|Variable overhead expenditure variance
|The difference between actual hours worked and the standard hours in actual output multiplied by the standard overhead rate.
|The difference between actual results and planned results
|The investigation and classification of variances. The variances are analyzed into constituent parts so that corrective actions can be taken and responsibility pinpointed.
|Level of activity. It has a significant effect on the amount of costs. It can be measured in units, hours,etc.