I can define the following terms as they relate to our unit:
|Budget||Planning Budget||Flexible Budget||Cash Budget
|Master Budget||Activity Variance||Revenue Variance||Spending Variance
|Fixed Cost||Variable Cost||Standard Cost||Standard Hours
|Standard Price||Variance||Quantity Variance||Efficiency Variance
|Rate Variance||Price Variance||Materials||Labor
|Variable Overhead||Fixed Overhead||Selling expense||Administrative expense
- I can understand the difference between a planning budget and a flexible budget.
- I can identify costs as fixed cost or variable cost.
- I can understand the purpose of using a budget for businesses.
- I can analyze differences between budget and actual and explain possible reasons for the variances.
- I can analyze and explain labor rate and efficiency variances.
- I can analyze and explain material price and quantity variances.
- I can understand the use of standards (including cost, hours or price) for budgeting and analysis.
- I can prepare a sales and production budget (or purchases budget for merchandiser).
- I can prepare a selling and administrative expense budget.
- I can prepare a cash budget including schedules of receivables and payables.
- I can prepare a budgeted income statement and budgeted balance sheet.
- I can prepare a master budget including budgets for sales, purchases, selling and administrative expenses, cash, income statement and balance sheet.
- I can prepare a flexible budget based on the actual level of production.
- I can prepare a flexible budget performance report analyzing difference between budget and actual.
- I can calculate variances for materials and labor.
Click Budgeting Study Plan for a printable copy.