by pay@crispino.us | Sep 18, 2026 | Cost & Managerial Accounting, Terminologies
The study of differences between actual results and budgeted or standard figures. Identifies areas requiring attention or improvement. A vital managerial accounting tool. by pay@crispino.us | Aug 30, 2026 | Cost & Managerial Accounting, Terminologies
Expenses that change in direct proportion to sales or production, such as raw materials or commissions. Key for understanding contribution margins. Helps in pricing decisions. by pay@crispino.us | Aug 9, 2026 | Cost & Managerial Accounting, Terminologies
The sales level at which total revenues equal total costs, resulting in no profit or loss. A key tool in business planning. Helps determine minimum sales targets. by pay@crispino.us | Jun 22, 2026 | Cost & Managerial Accounting, Terminologies
Expenses that remain constant regardless of production volume, such as rent or salaries. They do not vary with activity levels. Important for break-even analysis. by pay@crispino.us | Jun 22, 2026 | Cost & Managerial Accounting, Terminologies
A system that assigns expected costs to production for budgeting and performance evaluation. Differences between standard and actual costs create variances. Useful for control and planning. by pay@crispino.us | Jun 2, 2026 | Cost & Managerial Accounting, Terminologies
The difference between sales revenue and variable costs. It contributes toward covering fixed costs and generating profit. Used in cost-volume-profit analysis.