Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 63

Following are a number of key terms and concepts introduced in the chapter, along with a list of corresponding definitions. Match the appropriate letter for the key term or concept to each definition provided (items 1–20). Note that not all key terms and concepts will be used.

a. Performance report	h. Responsibility reporting
b. Flexible budget	i. Overapplied overhead
c. Organization segment	j. Underapplied overhead
d. Direct fixed expenses	k. Favorable variance
e. Common fixed expenses	l. Unfavorable variance
f. Management by exception	m. Direct labor rate variance
g. Segment margin	n. Direct labor efficiency variance
o. Volume variance	s. Variable overhead spending variance
p. Raw materials usage variance	t. Variance
q. Raw materials price variance	u. Residual income
r. Variable overhead efficiency variance	v. Balanced scorecard

_________That part of the variable overhead variance due to the difference between actual hours required and standard hours allowed for the work done.