Match the appropriate letter for the key term or concept to each definition provided (items 1-20). Note that not all key terms and concepts will be used.
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a. Performance report
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h. Responsibility reporting
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b. Flexible budget
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i. Overapplied overhead
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c. Organization segment
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j. Underapplied overhead
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d. Direct fixed expenses
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k. Favorable variance
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e. Common fixed expenses
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l. Unfavorable variance
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f. Management by exception
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m. Direct labor rate variance
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g. Segment margin
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n. Direct labor efficiency variance
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o. Volume variance
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s. Variable overhead spending
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p. Raw materials usage variance
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variance
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q. Raw materials price variance
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t. Variance
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r. Variable overhead efficiency
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u. Residual income
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variance
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v. Balanced scorecard
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1. The excess of actual cost over budgeted cost.
2. The contribution of a segment of an organization to the common fixed expenses and operating income of the organization.
3. A system of performance reporting that involves successive degrees of summarization as the number of management levels being reported about increases.
4. A management concept that involves thorough planning and then exerting corrective effort only in those areas that do not show results consistent with\ the plan.
5. A report comparing planned and actual activity or costs.
6. A budget that has been adjusted to reflect a budget allowance based on actual level of activity rather than the planned level of activity used to establish the original budget.
7. An expense assigned to an organizational segment in a segmented income statement that would not be incurred if the segment were eliminated.
8. The excess of budgeted cost over actual cost.
9. An expense that is not assigned to an organizational segment in a segmented income statement because the expense would be incurred even if the segment were eliminated.
10. A set of integrated financial and operating performance measures that communicate an organization's strategic goals and priorities.
11. That part of the variable overhead variance due to the difference between actual hours required and standard hours allowed for the work done.
12. A fixed manufacturing overhead variance caused by actual activity being different from the estimated activity used in calculating the predetermined overhead application rate.
13. That part of the direct labor variance due to the difference between actual hours required and standard hours allowed for the work done.
14. A debit balance in the manufacturing overhead account that results from actual overhead costs in excess of applied overhead.
15. That part of the total raw materials variance due to the difference between standard usage and actual usage of raw materials.
16. That part of the variable overhead variance due to the difference between actual variable overhead cost per hour and the standard rate used to apply overhead.
17. The difference between budgeted amount and actual amount.
18. That part of the direct labor variance due to the difference between the actual hourly wage rate paid and the standard rate used to cost a product.
19. That part of the total raw materials variance due to the difference between standard cost and actual cost of raw materials used.
20. The amount of income an investment center generates above a minimum required return on investment.