|variable overhead efficiency variance|
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Definition of variable overhead efficiency variance
variable overhead efficiency variance
the difference between budgeted variable overhead based on actual input activity and variable overhead applied to production
the difference between total budgeted overhead at actual hours and total budgeted
Reflects the relative amount of wealth wasted in making transactions. An efficient
A random value that can take any fractional value within specified ranges, as
A statistical measure of the degree to which random variables move together.
A random variable that can take only a certain specified set of discrete possible
Reflects the amount of wasted energy.
A value determined within the context of a model.
A variable whose value is determined outside the model in which it is used. Also called
Related: pricing efficiency.
The speed and accuracy with which prices reflect new information.
The degree to which the prices of assets reflect the available marketplace
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.
Normal random variable
A random variable that has a normal probability distribution.
Weighted sum of the covariance and variances of the assets in a portfolio.
Also called external efficiency, a market characteristic where prices at all times fully
A function that assigns a real number to each and every possible outcome of a random experiment.
Semi-strong form efficiency
A form of pricing efficiency where the price of the security fully reflects all
The covariance between a variable and the lagged value of the variable; the same as
Pricing efficiency, where the price of a, security reflects all information, whether or
A value determined within the context of a model. Also called endogenous variable.
Annuity contracts in which the issuer pays a periodic amount linked to the investment
A cost that is directly proportional to the volume of output produced. When production is zero,
Variable life insurance policy
A whole life insurance policy that provides a death benefit dependent on the
Variable price security
A security, such as stocks or bonds, that sells at a fluctuating, market-determined price.
Variable rate CDs
Short-term certificate of deposits that pay interest periodically on roll dates. On each roll
Variable rated demand bond (VRDB)
Floating rate bond that can be sold back periodically to the issuer.
Variable rate loan
Loan made at an interest rate that fluctuates based on a base interest rate such as the
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
Weak form efficiency
A form of pricing efficiency where the price of the security reflects the past price and
Those that vary with the amount of goods you produce or sell. These may include utility bills, labor, etc.
A general term referring to period costs, such as selling, administration and financial expenses.
Any cost other than a direct cost – may refer to an indirect production cost and/or to a non-production expense.
The process of spreading production overhead equitably over the volume of production of goods or services.
The rate (often expressed per hour) applied to the time taken to produce a product/service, used to allocate production overheads to particular products/services based on the time taken. May be calculated on a business-wide or cost centre basis.
A general term referring to indirect costs.
Costs that have both fixed and variable components.
A cost that increases or decreases in proportion with increases or decreases in the volume of production of goods or services.
A method of costing in which only variable production costs are treated as product costs and in which all fixed (production and non-production) costs are treated as period 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.
overhead generally refers to indirect, in contrast to direct,
Expenses that change with changes in either sales volume
The weighted average of the squared deviations from the
the amount of overhead that has been assigned to Work in Process Inventory as a result of productive activity; credits for this amount are to an overhead account
the difference between total actual overhead
the budget variance of the two variance approach to analyzing overhead variances
an unknown item for which a linear programming
an unknown variable that is to be predicted
a measure of the degree to which tasks were performed
fixed overhead spending variance
the difference between the total actual fixed overhead and budgeted fixed overhead;
fixed overhead volume variance
see volume variance
a variable that, when changed, will
a critical factor that management believes will
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);
manufacturing cycle efficiency (MCE)
a ratio resulting from dividing the actual production time by total lead time;
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);
material yield variance
(standard mix X actual quantity X standard price) - (standard mix X standard quantity X standard price);
the fixed overhead volume variance;
a credit balance in the overhead account
any factory or production cost that is indirect to
overhead application rate
see predetermined overhead rate
overhead spending variance
the difference between total actual overhead and total budgeted overhead at actual
predetermined overhead rate
an estimated constant charge per unit of activity used to assign overhead cost to production or services of the period; it is calculated by dividing total budgeted annual overhead at a selected level of volume or activity by that selected measure of volume or activity; it is also the standard overhead application rate
a variable used in a linear programming problem
standard overhead application rate
a predetermined overhead rate used in a standard cost system; it can be a separate variable or fixed rate or a combined overhead rate
a variable used in a linear programming problem that represents overachievement of a minimum requirement; it is associated with greater-than-or-equal-to constraints
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
a debit balance in the overhead account at the end of a period; when the applied overhead amount is less than the actual overhead that was incurred
a cost that varies in total in direct proportion
a cost accumulation and reporting method
variable cost ratio
the proportion of each revenue dollar
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.
Direct materials mix variance
The variance between the budgeted and actual mixes of
All the costs incurred during the manufacturing process, minus the
That portion of total overhead costs which remains constant in size
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
Selling price variance
The difference between the actual and budgeted selling price for
A cost that changes in amount in relation to changes in a related activity.
Market prices reflect all publicly available information.
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