Attainable standard refers to a cost or income standard set at a level that is achievable by operators under realistic conditions during the relevant cost period.
Budget slack refers to the excess funds that managers intentionally create by overestimating costs or underestimating revenues in budget preparation, often aiming to meet performance evaluations or safeguard against uncertainties.
The principle that managers should only be held responsible for the costs and investments they have the ability to influence directly. Understanding and applying the controllability concept is crucial for effective managerial accountability and performance evaluation.
Interfirm comparison is a process used to evaluate the performance of similar organizations by analyzing their accounts and statistical data through ratio analysis.
An operational audit is a thorough review of an organization's activities to assess whether they are being carried out efficiently and effectively, and to identify opportunities for improvement.
A post-completion audit involves comparing the actual cash flows with the forecast cash flows for an investment to assess the validity of the initial financial projections and ultimately improve future investment decisions.
A sales budget is a financial plan that outlines projected sales volumes and revenues for a specific budget period. It serves as a critical component of the budgetary control system and aids in strategic planning and performance evaluation.
Shareholder Value Analysis (SVA) is a financial management method that focuses on increasing the value delivered to shareholders through strategic decision-making and performance evaluation.
Standard cost refers to the predetermined unit cost of a product or service within a standard costing system. It is used for budgeting, performance evaluation, and cost control by providing a basis for comparison against actual costs.
The standard price is a predetermined cost established for a product or service, commonly used as a benchmark for budgeting, costing, and performance evaluation in manufacturing and other industries.
Trend analysis involves evaluating the performance of a company or industry over a period using accounting ratios to identify patterns and forecast future performance.
