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Negative reinforcement weakens behavior.
Direct Materials Quantity Variance
The discrepancy between the true usage of direct materials in production processes and the forecasted standard usage, multiplied by the standard unit cost.
Total Direct Materials Cost Variance
The difference between the actual cost of direct materials used in production and the standard cost of those materials.
Fixed Overhead Cost
Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.
Volume Variance
A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.
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