CMA P1 Gleim Unit 10-11知识点整理.docx

PART FOUR: Performance Management 20%Unit 10. Cost and Variance Measures* Variance Analysis: the basis of any performance evaluation system using a budget= variances are the differences b/w the amounts budgeted and the amounts actually incurred On the cost side: 1)Favorable variance: occurs when actual costs standard costs 2) Unfavorable variance: occurs when actual costs standard costs One the revenue side:1)Favorable variance: occurs when actual revenue budgeted revenue 2) Unfavorable variance: occurs when actual revenue budgeted revenue= in all, a favorable variance increases income while a unfavorable one decreased income* Management by exception: the practice of giving attention primarily to significant deviations from expectations.= enabled by the variance analysis* Assignment of Responsibility: a crucial part of variance analysis. The performance measures on which management are judged should be directly related to the factors that drive the element being measured. = the goal is to assign responsibility for variances to those most likely to have info. that will enable management to find solutions* Variance Overview:1) Static Budget Variance: measures the difference b/w the static (master) budget amount and the actual result. = the total variance to be explained2) Flexible Budget Variance: measures the difference b/w the actual results and the budgeted amount for actual activity level. Sales-volume Variance: measures the difference b/w the flexible budget and static budget amounts if selling prices and costs are constant.Figure 1:Static Budget VarianceFlexible Budget Variance aSales-volume Variance AActual Result aFFlexible Budget a SStatic Budget Actual Inputs Standard Inputs Budgeted Inputs × × × Actual Price Standard Price Standard PriceFigure 2:Flexible Budget Variance ADM Variance aDL Variance aMOH Variance Price Quantity Rate Efficiency Variable Fixed Material mix Material yield Labor mi