Presented Below Are Terms Preceded by Letters a Through J

question 213

Essay

Presented below are terms preceded by letters a through j and followed by a list of definitions 1 through 10. Enter the letter of the term with the definition, using the space preceding the definition.
(a) Cost variance
(b) Volume variance
(c) Price variance
(d) Quantity variance
(e) Standard costs
(f) Controllable variance
(g) Fixed budget
(h) Flexible budget
(i) Variance analysis
(j) Management by exception
________ (1) Occurs when the company operates at a different capacity level than was predicted.
________ (2) A planning budget based on a single predicted amount of sales or other activity measure.
________ (3) Preset costs for delivering a product, or service under normal conditions.
________ (4) A process of examining differences between actual and budgeted sales or costs and describing them in terms of the price and quantity differences.
________ (5) The difference between actual price per unit of input and standard price per unit of input.
________ (6) A budget prepared based on several different amounts of sales, often including a best-case and worst-case scenario.
________ (7) The difference between actual quantity of input used and standard quantity of input used.
________ (8) The difference between actual overhead costs incurred and the budgeted overhead costs based on a flexible budget.
________ (9) A management process to focus on significant differences between actual costs and standard costs.
________ (10) The difference between actual and standard cost.

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Definitions:

Prepaid Expenses

Future expenses that have been paid in advance and are accounted for as assets on a balance sheet until they are incurred.

Accrual Basis

An accounting method that records revenues and expenses when they are earned or incurred, regardless of when the cash is actually exchanged.

Accounts Receivable

Amounts due to a company from its clients for the supply of goods or services, which have yet to be paid for.

Accounts Payable

The amount of money a company owes to its creditors for goods or services purchased on credit.