Consider the following terms:
a. Benchmarking
b. Efficiency Variance
c. Fixed Overhead Spending Variance
d. Price Variance
e. Fixed Overhead Volume Variance
f. Standard Cost
Consider the following definitions:
_____1. Measures whether the quantity of materials or labor used to make the actual number of outputs is within the standard allowed for that number of outputs.
_____2. Using standards based on “best practice.”
_____3. Measures how well the business keeps unit prices of material and labor inputs within standards.
_____4. A budget for a single unit.
_____5. Compares actual overhead spent to budgeted overhead costs.
_____6. Arises when budgeted overhead differs from applied overhead.
Requirement
1. Match each term to the correct definition.