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How do corporations ensure that managers' and stockholders' interests coincide?
Efficiency Variance
A measure used in cost accounting to determine the difference between the actual cost of producing an item and the standard cost, based on the actual hours worked.
Budget Variance
The difference between budgeted figures for revenue or expenses and actual figures.
Fixed Overhead Budget
The fixed overhead budget is a financial plan that estimates the fixed costs associated with production, which do not vary with the level of output.
Volume Variance
A measure of the difference between the expected (budgeted) volume of sales or production and the actual volume, used in cost accounting and financial analysis.
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