08-27-2009, 08:44 PM
<font color="blue"><b>Budget Variance</b></font id="blue">
A measure of the difference between the actual fixed overhead costs incurred during the period and budgeted fixed overhead costs as contained in the flexible budget.
<font color="blue"><b>Denominator Activity</b></font id="blue">
The activity figure used to compute the predetermined overhead rate.
<font color="blue"><b>Flexible Budget</b></font id="blue">
A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to compare actual costs incurred.
<font color="blue"><b>Static Budget</b></font id="blue">
A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
<font color="blue"><b>Volume Variance</b></font id="blue">
The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate.
A measure of the difference between the actual fixed overhead costs incurred during the period and budgeted fixed overhead costs as contained in the flexible budget.
<font color="blue"><b>Denominator Activity</b></font id="blue">
The activity figure used to compute the predetermined overhead rate.
<font color="blue"><b>Flexible Budget</b></font id="blue">
A budget that is designed to cover a range of activity and that can be used to develop budgeted costs at any point within that range to compare actual costs incurred.
<font color="blue"><b>Static Budget</b></font id="blue">
A budget created at the beginning of the budgeting period that is valid only for the planned level of activity.
<font color="blue"><b>Volume Variance</b></font id="blue">
The variance that arises whenever the standard hours allowed for the output of a period are different from the denominator activity level that was used to compute the predetermined overhead rate.
