Planning Helps Us Avoid Simply Being Carried Along by the Flow

question 2

True/False

Planning helps us avoid simply being carried along by the flow of events, and focuses our attention on priorities.

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Definitions:

Price Variances

The difference between the actual cost and the standard cost of goods or services.

Direct Labor Cost Variance

The difference between the budgeted or expected cost of direct labor and the actual cost incurred.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels of the business.

Unfavorable Variance

A financial term describing a situation where actual costs exceed budgeted or planned costs.