AJAX progress indicator
  • achievable standards
    A standard that takes into account normal spoilage and inefficiency; intended to allow workers to reach the established benchmarks
  • balanced scorecard
    A set of performance measures that are congruent with assessing improvement in financial, customer, and business process outcomes
  • centralized decision making
    A business style where top leaders make and direct most important decisions
  • common fixed costs
    Fixed costs that are incurred to support more than one business unit
  • cost center
    An area of responsibility under the control of a manager who is responsible for costs incurred within the unit; the unit generally has little revenue function
  • decentralized decision making
    A business style where top leaders concentrates on strategy, and leaves day-to-day operation and decision-making tasks to lower-level personnel
  • direct labor efficiency variance
    A variance comparing standard hours of direct labor to the actual hours worked; measured at the standard rate per hour [(standard hours - actual hours) X standard rate]
  • direct labor rate variance
    A variance that reveals the difference between the standard rate and actual rate for the actual labor hours worked [(standard rate - actual rate) X actual hours]
  • fixed overhead spending variance
    A fixed overhead variance that compares actual fixed overhead to the budgeted fixed overhead
  • fixed overhead volume variance
    A fixed overhead variance that compares the budgeted fixed overhead to the fixed overhead that is applied to production based on standard fixed overhead per unit of output
  • ideal standards
    A standard that could only be achieved under perfect operating conditions; such standards are rarely expected to be achieved
  • investment center
    A evaluative unit where managers are accountable for cost and profit outcomes, including consideration of the amount of capital that is deployed to achieve those outcomes
  • management by exception
    A management focus of attention on areas where corrective measures appear necessary
  • materials price variance
    A variance that reveals the difference between standard price for materials purchased and amounts actually paid for those materials [(standard price - actual price) X actual quantity]
  • materials quantity variance
    A variance comparing standard quantity to actual quantity of materials; variation is measured at the standard price per unit [(standard quantity - actual quantity) X standard price]
  • profit center
    Business unit that has control over both costs and revenues and is therefore evaluated on the profit outcomes
  • responsibility center
    The part of an organization under the control of a manager
  • return on investment
    ROI: A model consisting of a margin component (Operating Income/Sales) and turnover component (Sales/Average Assets); reduces to Operating Income/Average Assets
  • standard cost
    A measure of what costs should be incurred to achieve the observed output
  • traceable fixed costs
    Fixed costs that would not exist if the unit under evaluation ceased to exist
  • variable overhead efficiency variance
    A variance that reflects the level of efficiency associated with the application of variable overhead to production
  • variable overhead spending variance
    A variance that reflects the difference between actual variable overhead and standard variable overhead associated with the actual units of the application base