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Briefly Explain the Planning and Control Activity Function in Management

question 49

Essay

Briefly explain the planning and control activity function in management accounting.How are these two activities linked to each other?


Definitions:

Flexible Budget

A projection of budget data for various levels of activity.

Overhead Applied

The portion of overhead costs allocated to individual products or job orders based on a predetermined rate.

Labor Price Variance

This is the difference between the actual cost of labor and the standard cost, indicating how much more or less was paid for labor than expected.

Direct Labor Cost

This refers to the wages and benefits paid for the hours that workers directly spend on manufacturing a product or performing services.

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