What is an activity variance and what does it mean quizlet? [Solved] (2022)

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What is an activity variance and what does it mean quizlet?

An activity variance is the difference between a revenue or cost item in the flexible budget and the same item in the static planning budget. An activity variance is due solely to the difference in the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.... read more ›

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What does an activity variance mean?

Activity variances are the differences between the static/planning budget and the flexible budget and are caused by the difference between planned and actual activity levels.... view details ›

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Which variance is sometimes known as the activity variance quizlet?

An activity variance is the difference between an actual revenue or cost and the revenue or cost in the flexible budget that is adjusted for the actual level of activity of the period.... read more ›

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What is a spending variance and what does it mean?

A spending variance is the difference between the actual amount of a particular expense and the expected (or budgeted) amount of an expense.... read more ›

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What is a variance quizlet?

variance. a measure of variability for the average squared distance that scores deviate from their mean.... see more ›

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How is activity variance calculated?

When adding up the activity variance of a series of tasks you don't just sum the figures. AV is the square root of the sum of the total activity variance. The standard deviation for the project as a whole is the sum of all the actvity variances. If you sum those figures 1089 + 10,000 + 17,689 + 2,7556 = 56,334.... see details ›

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How do you find the activity variance along the critical path?

CP represents activity on critical path:
  1. Project duration expected E = 5 + 15 + 4 + 5 = 29 days (i.e. the total of te-s for activities on the Critical Path).
  2. Variance of the Critical Path = 2.79 + 2.79 + 0.45 + 0 = 6.03.
  3. Standard Deviation (SD) of project duration is √6.03 = 2.46.
... see more ›

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When the activity measure is the number of units sold the revenue variance?

When the activity measure is the number of units sold, the revenue variance is favorable if the average actual selling price is greater than expected.... view details ›

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What is the spending variance quizlet?

A spending variance is the difference between the actual amount of the cost and how much a cost should have been, given the actual level of activity.... see more ›

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Which variance will be unfavorable due to employees?

Which variance will be unfavorable due to employees working more hours than allowed for the actual number of units produced? Efficiency. An operating budget would not include a what? Cash budget.... view details ›

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Is the spending variance the same as the direct materials price variance?

The spending variance for direct materials is known as the purchase price variance, and is the actual price per unit minus the standard price per unit, multiplied by the number of units purchased.... see details ›

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How do you find the variance quizlet?

Terms in this set (7)
  1. Calculate and list the deviation scores from the mean for each score.
  2. Square each of the deviation scores.
  3. Add up all the squared deviation scores (which is called the SS or sum of squares)
  4. Divide SS by the number of scores, and this gives you the variance (s2 or sigma2).
... read more ›

What is an activity variance and what does it mean quizlet? [Solved] (2022)

What is variance analysis quizlet?

What is the definition of variance analysis? The evaluation of performance by means of variances, whose timely reporting should maximise the opportunity for managerial action.... view details ›

What is the difference between standard deviation and variance quizlet?

The standard deviation equals the square root of the variance. The variance equals the squared standard deviation. when we do this, our error in prediction is determined by the variability in the scores.... view details ›

What is the activity variance in net operating income?

An activity variance is due solely to the difference in the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.... read more ›

How do you explain variance analysis?

Definition: Variance analysis is the study of deviations of actual behaviour versus forecasted or planned behaviour in budgeting or management accounting. This is essentially concerned with how the difference of actual and planned behaviours indicates how business performance is being impacted.... read more ›

What is variance in relation to activities in PERT?

The level of volatility of the time required to carry an activity from the average time is termed as variance in PERT analysis.... continue reading ›

How do you find the expected completion time and variance for each activity?

How to calculate expected duration, variance, and standard deviation of ...... view details ›

How do you calculate variance in project management?

To calculate SV, subtract your project's planned value (PV) from its earned value (EV): SV = EV – PV. You will also need to know the value of your project's planned budget at completion (BAC). If your SV is positive, your project is ahead of schedule. If it is negative, your project is behind schedule.... see details ›

What are the 3 main sales variances?

The actual sale price of your product (per unit) The standard sale price of your product (how much you budgeted to sell your product for per unit) The number of units sold.... view details ›

How do you calculate sales revenue variance?

Identify the price per unit sold. Subtract the budgeted units sold from the actual units sold. Multiply your answer by the price per unit sold to determine what your sales volume variance is.... view details ›

How do you calculate overall revenue and spending variance?

There are many variations for calculating spending variance for different types of expenses, but the basic formula for this calculation is:
  1. Actual cost - expected cost = spending variance.
  2. (Actual variable overhead rate - expected variable overhead rate) x hours worked = variable overhead spending variance.
Jun 22, 2021

What is the variable overhead spending variance quizlet?

The Variable Overhead Spending Variance is the difference between the actual and the budgeted rates of variable overhead multiplied by actual hours. The Variable Overhead Efficiency Variance is the difference between the actual hours worked and the budgeted hours worked multiplied by the standard overhead rate.... view details ›

What is the direct materials spending variance quizlet?

A spending variance is calculated by comparing actual costs with the static budget. The direct material quantity variance is the difference between the actual quantity and the standard quantity of materials multiplied by the actual price.... see details ›

What are the two variances between the actual cost and the standard cost for direct labor who generally has control over the direct labor cost variances?

Answer: Similar to direct materials variances, direct labor variance analysis involves two separate variances: the labor rate variance and labor efficiency variance.... continue reading ›

Which variances should be investigated?

When should a variance be investigated - factors to consider
  • Size. A standard is an average expected cost and therefore small variations between the actual and the standard are bound to occur. ...
  • Favourable or adverse. ...
  • Cost. ...
  • Past pattern. ...
  • The budget. ...
  • Reliability of figures.
Nov 14, 2012
... view details ›

What causes unfavorable variance?

An unfavorable variance can occur due to changing economic conditions, such as lower economic growth, lower consumer spending, or a recession, which leads to higher unemployment. Market conditions can also change, such as new competitors entering the market with new products and services.... view details ›

What is an activity variance and what does it mean what is a revenue variance and what does it mean what is a spending variance and what does it mean?

An activity variance is the difference between a revenue or cost item in the flexible budget and the same item in the static planning budget. An activity variance is due solely to the difference in the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget.... see more ›

How do you calculate the variance of an activity in project management?

How to calculate expected duration, variance, and standard deviation of ...... continue reading ›

What is the activity based flexible budget variance?

Definition of Flexible Budget and Flexible Budget Variance

First, a flexible budget is a budget in which some amounts will increase or decrease when the level of activity changes. A flexible budget variance is the difference between 1) an actual amount, and 2) the amount allowed by the flexible budget.... view details ›

What is activity based product costing?

Activity-based costing (ABC) is a method of assigning overhead and indirect costs—such as salaries and utilities—to products and services. The ABC system of cost accounting is based on activities, which are considered any event, unit of work, or task with a specific goal.... see details ›

What are variances in accounting?

A variance in accounting is the difference between a forecasted amount and the actual amount. Variances are common in budgeting, but you can have a variance in anything that you forecast. Basically, whenever you predict something, you're bound to have either a favorable or unfavorable variance.... read more ›

What are the 3 main sales variances?

The actual sale price of your product (per unit) The standard sale price of your product (how much you budgeted to sell your product for per unit) The number of units sold.... see more ›

What is a variance in project management?

What Is Cost Variance in Project Management? Cost variance (also referred to as CV) is the difference between project costs estimated during the planning phase and the actual costs. In other words, it is how much actual costs vary from budgeted costs.... continue reading ›

How is the variance for a project found quizlet?

CV (Cost Variance) is calculated by EV (Earned Value) - AC (Actual Cost). The -4,000 means that the project is $4,000 over budget. You are halfway through your project and your sponsor would like to know how much the project is expected to cost when it is completed.... read more ›

What does time variance mean?

A time variance is the difference between the standard hours and actual hours assigned to a job. The concept is used in standard costing to identify inefficiencies in a production process. The variance is then multiplied by the standard cost per hour to quantify the monetary value of the variance.... see more ›

What is a budget variance quizlet?

budget variance. the difference between the figure that the business budgeted for and the actual figure. It's calculated at the end of a budget period when the actual figure will be known.... see more ›

Why is it important to determine flexible budget variances?

Creating a second, flexible budget allows a company to evaluate its actual performance during the static budget period. Variances or differences in the actual budget give a small business important information about performance elements such as overhead costs and profit.... see more ›

What is the difference between flexible budget variance and sales volume variance?

This is a flexible budget based on the actual sales level. Then the price cost variances are the differences between the actual results and the flexible budget, i.e., columns 2 and 4. The sales volume variances are the differences between the static master budget and the flexible budget, i.e., columns 1 and 4.... see details ›

What is activity-based costing example?

Examples include square footage that is used per product, and the same would be used to allocate the rent of the factory as well as the maintenance cost of the firm; similarly, the number of purchase orders (i.e., PO) used to allocate the purchasing expenses of the purchasing department.... continue reading ›

What is the main focus of activity-based costing?

ABC focuses attention on cost drivers, the activities that cause costs to increase. Traditional absorption costing tends to focus on volume-related drivers, such as labour hours, while activity-based costing also uses transaction-based drivers, such as number of orders received.... see more ›

What is the main objective of activity-based costing?

Activity-based costing provides a more accurate method of product/service costing, leading to more accurate pricing decisions. It increases understanding of overheads and cost drivers; and makes costly and non-value adding activities more visible, allowing managers to reduce or eliminate them.... read more ›

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