XI.+Vocabulary+Terms


 * Control Limits =** upper and lower limits that are placed for judging the significance of variations in the plotted data.


 * Currently attainable standards =** standards that have no machine breakdowns, or any other problems.


 * Direct labor efficiency variance =** direct labor hours that were used, compared to direct hours that should have been used.


 * Direct labor rate variance =** what has been paid and what should have been paid to direct labors.


 * Direct material price variance =** difference from actual material cost and direct material that was budgeted.


 * Direct material usage variance =** difference from actual material used and direct material that was used.


 * Favorable variance =** when actual prices or usage is less than the standard prices or usage.


 * Fixed overhead spending variance =** actual fixed overhead less budgeted fixed overhead.


 * Fixed overhead volume variance =** budgeted fixed overhead less applied fixed overhead.


 * Ideal standards =** when operating perfectly generates maximum efficiency.


 * Kaizen standards =** continuous improving standards.


 * Mix variance =** when actual costs are different than the standard costs.


 * Price (rate) variance =** difference between the amount of work that should have been paid for and the actual amount paid.


 * Price standards =** a predetermined price for a good or service, based on historical price and other costs**.**


 * Quantity standards =** the number of inputs allowed per unit of output**.**


 * Standard bill of material =** a list of material that is allowed per unit of output.


 * Standard cost per unit =** the cost per unit that should be achieved per output.


 * Standard cost sheet =** a list of costs that should be applied to per unit of output.


 * Standard hours allowed =** hours that should be achieved per output.


 * Standard quantity of materials of allowed =** material that should be achieved per output.


 * Total budgeted variance =** actual cost less planned cost.


 * Unfavorable variance =**when actual prices or usage is greater than the standard prices or usage.


 * Unit standard cost =** standard price times standard quantity.


 * Usage (efficiency) variance =** standard quantity less actual quantity, times price.


 * Variable overhead efficiency variance =** actual labor hours less standard hours allowed.


 * Variable overhead spending variance =** actual overhead less standard overhead allowed.


 * Yield variance =** standard cost for standard yield less actual cost for actual yield.