Presented below are terms preceded by letters a through j and a list of definitions 1 through 10. Enter the letter of the term with the definition, using the space preceding the definition.
a. Cost variance
b. Volume variance
c. Price variance
d. Quantity variance
e. Standard costs
f. Controllable variance
g. Fixed budget
h. Flexible budget
i. Variance analysis
j. Management by exception
______ 1. The difference between the total budgeted overhead cost and the overhead cost that was allocated to products using the predetermined fixed overhead rate.
______ 2. A planning budget based on a single predicted amount of sales or production volume; unsuitable for evaluations if the actual volume differs from the predicted volume.
______ 3. Preset costs for delivering a product, component, or service under normal conditions.
______ 4. A process of examining the differences between actual and budgeted sales or costs and describing them in terms of the amounts that resulted from price and quantity differences.
______ 5. The difference between actual and budgeted sales or cost caused by the difference between the actual price per unit and the budgeted price per unit.
______ 6. A budget prepared based on predicted amounts of revenues and expenses corresponding to the actual level of output.
______ 7. The difference between actual and budgeted cost caused by the difference between the actual quantity and the budgeted quantity.
______ 8. The combination of both overhead spending variances (variable and fixed) and the variable overhead efficiency variance.
______ 9. A management process to focus on significant variances and give less attention to areas where performance is close to the standard.
______ 10. The difference between actual cost and standard cost, made up of a price variance and a quantity variance.