Cost Accounting Text 3

  1. What is a Static Budget
    A static budget is a budget developed at the beginning of a period of time based on input standards, price standards, and expected sales and production volume. That is a budget for a single activity level; usually the master budget.
  2. Describe the static budget revenues
    Conceptually, the static budget revenues are the revenues we expected based on budgeted sales volume. Mathmatically, static budget revenue equals budgeted sales volume x budgted price
  3. Describe the static budget variable costs.
    Conceptually, the static budget variable costs are the variable costs we expect to incur based on budgeted sales volume. Mathmatically, static budget variable cost equals budgeted sales volume x budgeted variable cost per unit
  4. Describe the static budget fixed overhead costs.
    Conceptually, the static budget fixed costs are the total fixed costs we expect to incur for the year. They are not generally affected by changes in sales volume.
  5. What is a standard?
    A carefully determine price, cost, or quantity used as a benchmark for judging performance.
  6. What is a standard quantity of input for direct material?
    Expected quantity of direct material used per unit of product.
  7. What is a standard input price for direct material?
    Expected price paid to purchase direct materials.
Author
Anonymous
ID
151440
Card Set
Cost Accounting Text 3
Description
Test 3 Flash Cards
Updated