accounting

3. includes price, freight, duty, tax charges, payment and discount terms, inventory storage costs, scrap rates, rebates or special incentives, warranties, and disposal costs
5. a cost that has been incurred in the past
6. variance that indicates whether the actual quantity used was less or more than the standard quantity allowed for the actual output
7. analysis used to calculate the sales vol-ume necessary to achieve a target profit, stated as either a fixed or variable amount on a before- or after-tax basis
9. the process of categorizing the nature (favorable or unfavorable) of the differences between actual and standard costs/quantities and seeking explanations for those differences total
11. this ‘‘budget’’ is actually a comprehensive set of budgets, budgetary schedules, and budgeted organizational financial statements
12. measures how a percentage change in sales from the current level will affect company profits
13. variance that indicates whether the amount of time worked was less or more than the standard quantity allowed for the actual output
14. ratio that can be calculated by subtracting the contribution margin ratio from 100%

1. level of activity, in units or dollars, at which total revenue equals total cost
2. the intentional underestimation of revenues and/or overesti-mation of expenses
4. Another method of computing BEP in sales dollars. This is calculated as contribution margin divided by revenue
6. which is the excess of budgeted or actual sales over break even sales
8. variance indicates whether the amount paid for the material was less or more than the standard price
10. variance that is the difference between the actual wages paid to labor for the period and the standard cost of actual hours worked
15. variance that equals total actual OH minus budgeted OH for the period’s actual out-put