Dual-Rate Method

Dual-rate method is a method of allocating costs in which two cost functions are used. Typically, the two functions are a fixed-cost function and a variable-cost function.

Double-Declining Balance (DDB)

Double-declining balance (DDB) is a form of accelerated depreciation in which first-year depreciation is twice the amount of straight-line depreciation when a zero terminal disposal price is assumed.

Direct Materials Yield Variance

Direct materials yield variance is the variance used to analyze effect of changes in material yield on materials cost. Formula Direct materials yield variance can be Computed as: (Actual units of material inputs used – Standard units of material inputs allowed for actual outputs) x (Standard average price per unit of material inputs).

Direct Materials Cost

The acquisition costs of all materials that are identified as part of the cost object and that may be traced to the cost object in an economically feasible way is called direct material cost.

Direct labor yield variance

Definition Direct labor yield variance is the variance used to analyze effect of changes in labor yield on labor cost. Direct labor yield variance can be computed as: Formula (Actual units of labor inputs used – allowed for actual outputs) x (Standard average price per unit of labor input).

Direct Labor Mix Variance

Variance used to analyze effect of change in the mix of labor on direct labor cost. Computed as: [(Actual labor mix Standard labor mix percentage – Standard labor mix percentage) x (Actual total units of labor inputs used)] x (Standard individual price per unit of labor input – Standard average price per unit of labor … Read more

Denominator Volume

The preselected production volume level used to set a budgeted fixed-factory-overhead rate applying costs to inventory. Also called denominator activity or denominator level.