ACCT 2102: UGA, Farmer- Chapter 11
Conceptual | Latest Update | 2024/2025 |
Rated A+
What is the purpose of a budget?
The purpose of a budget is to provide a financial plan that helps an organization allocate
resources effectively and control expenses.
Define "variance analysis."
Var...
ACCT 2102: UGA, Farmer- Chapter 11
Conceptual | Latest Update | 2024/2025 |
Rated A+
What is the purpose of a budget?
✔✔ The purpose of a budget is to provide a financial plan that helps an organization allocate
resources effectively and control expenses.
Define "variance analysis."
✔✔ Variance analysis is the process of comparing actual financial performance to budgeted
performance to identify discrepancies and understand their causes.
What is a flexible budget?
✔✔ A flexible budget adjusts budgeted revenues and expenses based on actual activity levels,
allowing for more accurate performance evaluation.
Explain the concept of "direct costs."
✔✔ Direct costs are expenses that can be directly traced to a specific product, department, or
project.
1
, What are indirect costs?
✔✔ Indirect costs are expenses that cannot be directly linked to a specific cost object and are
typically allocated across multiple departments.
What is the significance of a performance report?
✔✔ A performance report summarizes actual financial results compared to budgeted figures,
helping management assess efficiency and effectiveness.
Define "cost centers."
✔✔ Cost centers are departments or units within an organization that are responsible for
controlling costs but do not directly generate revenue.
What is a profit center?
✔✔ A profit center is a segment of an organization responsible for generating revenue and
managing its own costs, allowing for profitability analysis.
What does "return on investment" (ROI) measure?
✔✔ Return on investment (ROI) measures the profitability of an investment relative to its cost,
helping evaluate the efficiency of resource allocation.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller SterlingScores. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £7.49. You're not tied to anything after your purchase.
