Examlex
The "A" in the ACT Approach to Limit Setting stands for:
Efficiency Variance
A measure in cost accounting that calculates the difference between the actual quantity of input used and the standard amount expected to be used, multiplied by the standard price.
Budget Variance
The difference between budgeted or planned financial performance and the actual performance.
Predetermined Overhead Rate
An estimated rate used to allocate manufacturing overhead costs to products based on a specific activity base, aiding in cost control and pricing decisions.
Denominator Level
Refers to the total amount of capacity or activity used to allocate fixed costs to units of output.
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