XI.+Module+8000+Vocabulary

=XI. Module 8000 Vocabulary ldm=


 * 1. Effectiveness** – when the objectives outlined in the static budget are either met or exceeded.


 * 2. Efficiency** – when a company operates in the best manner possible. Consumption of resources is not wasted.


 * 3. Flexible budget** – a financial plan designed to change when the needs of the company change. It provides expected costs at several different levels of activity along with the budgeted costs for the actual level of activity.


 * 4. Flexible budget variances** – The difference between budgeted costs for the actual activity level and the actual costs for that same level of activity.


 * 5. Static budget** - a budget created based on a single level of activity, usually derived from last year’s numbers.


 * 6. Variable budget** – Due to budget changes caused by changes in variable costs, a flexible budget is sometimes called a variable budget.


 * 7. Volume variances** – the difference between the flexible budget and the static budget that are caused by differences in volume.

**References:** 1. Hansen, D.R. & Mowen, M.M. (2011). //Cornerstones of Cost Accounting.// Mason, OH: South-Western, Cengage Learning. 2. Web Finance, Inc. (2011). Retrieved June 29, 2011 from [|www.businessdictionary.com].