8.1: Chapter 8 Study Plan
- Page ID
- 26093
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I can define the following terms as they relate to our unit:
| Budget | Planning Budget | Flexible Budget | Cash Budget |
| Master Budget | Activity Variance | Revenue Variance | Spending Variance |
| Fixed Cost | Variable Cost | Standard Cost | Standard Hours |
| Standard Price | Variance | Quantity Variance | Efficiency Variance |
| Rate Variance | Price Variance | Materials | Labor |
| Variable Overhead | Fixed Overhead | Selling expense | Administrative expense |
Reasoning Targets
- I can understand the difference between a planning budget and a flexible budget.
- I can identify costs as fixed cost or variable cost.
- I can understand the purpose of using a budget for businesses.
- I can analyze differences between budget and actual and explain possible reasons for the variances.
- I can analyze and explain laborrate and efficiency variances.
- I can analyze and explain material price and quantity variances.
- I can understand the use of standards (including cost, hours or price) for budgeting and analysis.
Skill Targets
- I can prepare a sales and production budget (or purchases budget for merchandiser).
- I can prepare a selling and administrative expense budget.
- I can prepare a cash budget including schedules of receivables and payables.
- I can prepare a budgeted income statement and budgeted balance sheet.
- I can prepare a master budget including budgets for sales, purchases, selling and administrative expenses, cash, income statement and balance sheet.
- I can prepare a flexible budget based on the actual level of production.
- I can prepare a flexible budget performance report analyzing difference between budget and actual.
- I can calculate variances for materials and labor.
Click Budgeting Study Plan for a printable copy.