A costing system, which focuses on individual activities as particular cost object is classified as activity based costing. Activity-based costing (ABC) is a costing method that assigns overhead and indirect costs to related products and services.
Difference between actual input variance and budgeted input variance is called
Difference between actual input variance and budgeted input variance is called price variance. Price variance is the difference between the actual price paid by a company to purchase an item and its standard price, multiplied by the number of units purchased.
An efficiency variance is 200 units and actual input quantity is 500 units, then budgeted input quantity will be
Performance is evaluated only on basis of price variance, if performance evaluation is positive. Performance Evaluation is defined as a formal and productive procedure to measure an employee's work and results based on their job responsibilities.
Budget which is planned around a single output level is called
Budget which is planned around a single output level is called static budget. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.