|Direct materials mix variance
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Definition of Direct materials mix variance
Direct materials mix variance
The variance between the budgeted and actual mixes of
A statistical measure of the degree to which random variables move together.
A method of cash budgeting based on detailed estimates of cash receipts and cash
Lease in which the lessor purchases new equipment from the manufacturer and leases it to the
Commercial paper sold directly by the issuer to investors.
Selling a new issue not by offering it for sale publicly, but by placing it with one of several
For foreign exchange, the number of U.S. dollars needed to buy one unit of a foreign currency.
Buyers and sellers seek each other directly and transact directly.
The purchase by investors of securities directly from the issuer.
The acquisition abroad of physical assets such as plant and equipment, with
For foreign exchange, the number of units of a foreign currency needed to buy one U.S.$.
Computer-based systems that plan backward from the production schedule
Evaluation of risky prospects based on the expected value and variance of possible outcomes.
The selection of portfolios based on the means and variances of their returns. The
Related: Markowitz efficient portfolio
Graph of the lowest possible portfolio variance that is attainable for a given
The portfolio of risky assets with lowest variance.
Weighted sum of the covariance and variances of the assets in a portfolio.
The covariance between a variable and the lagged value of the variable; the same as
A measure of dispersion of a set of data points around their mean value. The mathematical
Variance minimization approach to tracking
An approach to bond indexing that uses historical data to
Specifies the permitted minimum or maximum quantity of securities that can be delivered to
Bill of materials
A listing of all the materials and quantities that go to make up a completed product.
Costs that are readily traceable to particular products or services.
Costs that are necessary to produce a product/service but are not readily traceable to particular products or services â€“ see overhead.
See sales mix.
Unprocessed goods bought for manufacture, part of inventory.
The mix of product/services offered by the business, each of which may be aimed at different customers, with each product/service having different prices and costs.
A method of budgetary control that compares actual performance against plan, investigates the causes of the variance and takes corrective action to ensure that targets are achieved.
A method of preparing the operating section of the Statement of Cash Flows that uses the companyâ€™s actual cash inflows and cash outflows.
Direct write-off method
A method of adjusting accounts receivable to the amount that is expected to be collected by eliminating the account balances of specific nonpaying customers.
A method of preparing the operating section of the Statement of Cash Flows that does not use the companyâ€™s actual cash inflows and cash outflows, but instead arrives at the net cash flow by taking net income and adjusting it for noncash expenses and the changes from last year in the current assets and current liabilities.
The weighted average of the squared deviations from the
bill of materials
a document that contains information about
the difference between total actual overhead
the budget variance of the two variance approach to analyzing overhead variances
a cost that is distinctly traceable to a particular cost object
see variable costing
the time spent by individuals who work specifically
a readily identifiable part of a product; the cost of such a part
a service department cost allocation approach
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
fixed overhead volume variance
see volume variance
a cost that cannot be traced explicitly to a particular
labor efficiency variance
the number of hours actually worked minus the standard hours allowed for the production
labor mix variance
(actual mix X actual hours X standard rate) - (standard mix X actual hours X standard rate);
labor rate variance
the actual rate (or actual weighted average rate) paid to labor for the period minus the standard rate multiplied by all hours actually worked during the period;
labor yield variance
(standard mix X actual hours X standard rate) - (standard mix X standard hours X standard rate);
material price variance
total actual cost of material purchased
material quantity variance
(actual quantity X standard price) - (standard quantity allowed standard price);
material mix variance
(actual mix X actual quantity X standard price) - (standard mix X actual quantity X standardprice);
materials requirements planning (MRP)
a computerbased information system that simulates the ordering and
material yield variance
(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price);
any possible combination of material or labor inputs
a cost that has both a variable and a fixed component;
the fixed overhead volume variance;
optimal mix of capital
the combination of capital sources at which the lowest weighted average cost of capital is achieved
overhead efficiency variance
the difference between total budgeted overhead at actual hours and total budgeted
overhead spending variance
the difference between total actual overhead and total budgeted overhead at actual
the relative combination of quantities of sales of the various products that make up the total sales of a company
total overhead variance
the difference between total actual overhead and total applied overhead; it is the amount of underapplied or overapplied overhead
the difference between total actual cost incurred
variable overhead efficiency variance
the difference between budgeted variable overhead based on actual input activity and variable overhead applied to production
variable overhead spending variance
the difference between total actual variable overhead and the budgeted amount of variable overhead based on actual input activity
a difference between an actual and a standard or
the process of categorizing the nature (favorable or unfavorable) of the differences between standard and actual costs and determining the reasons for those differences
a fixed overhead variance that represents
A measure of the degree to which returns on two assets move in
The dispersion of a variable. The square of the standard deviation.
Bill of materials
An itemization of the parts and subassemblies required to create a
A cost that can be clearly associated with specific activities or products.
A costing methodology that only assigns direct labor and material costs
Labor that is specifically incurred to create a product.
Direct materials cost
The cost of all materials used in a cost object, such as finished goods.
A member of a companyâ€™s Board of directors.
A cost that is not directly associated with a single activity or event. Such
The cost of any labor that supports the production process, but which is
Labor efficiency variance
The difference between the amount of time that was budgeted
Labor rate variance
The difference between the actual and standard direct labor rates
Materials price variance
The difference between the actual and budgeted cost to
Materials quantity variance
The difference between the actual and budgeted quantities
Production yield variance
The difference between the actual and budgeted proportions
Raw materials inventory
The total cost of all component parts currently in stock that
Selling price variance
The difference between the actual and budgeted selling price for
Average value of squared deviations from mean. A measure of volatility.
Taxes paid by consumers when they buy goods and services. A sales tax is an example.
The direct transfer of payroll funds from the company bank account
A format for the operating section of the cash-flow statement that reports actual cash receipts and cash disbursements from operating activities.
Advertising designed to elicit sales to customers who can be
A format for the operating section of the cash-flow statement that
Bill of materials (BOM)
A listing of all parts and subassemblies required to produce one
Breeder bill of materials
A bill of material that accounts for the generation and
A document listing the quantities of specific parts to be withdrawn
A list of the ingredients required for a blending operation.
Summarized bill of materials
A bill of materials format showing the grand total
The weighting of assets in an investment portfolio among different asset classes (e.g. shares, bonds, property, cash, overseas investments.
A system where funds are electronically credited to your account by a financial institution or a payroll service. For example, you can arrange with your employer to have your pay cheques automatically deposited into your no fee bank account.
InteracÂ® Direct Payment
Instead of paying with cash or a credit card, Interac direct Payment allows you to pay for your purchase with a debit card, such as your bank card. The amount of the purchase is electronically debited, or withdrawn, from your bank account (see debit card).
pre-authorized direct deposit
A system where funds are electronically credited to your account by a financial institution or a payroll service.
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