Accounting Chapter 10b

An unfavorable volume variance for variable expenses would indicate​ that: A. more units were actually sold than the company had originally budgeted to sell. B.actual variable expenses were higher than the flexible budget variable expenses. C. fewer units were actually sold than the company had anticipated. D. the expenses of the company were less than what they had planned.

A favorable volume variance for sales revenue would indicate​ that: A. actual sales revenue was higher than the flexible budget sales revenue. B. fewer units were actually sold than the company had anticipated. C. the expenses of the company were less than what they had planned. D. more units were actually sold than the company had originally budgeted to sell.

Which of the following may cause a favorable sales volume variance of the​ revenues? A. The flexible budget sales in dollars are greater than the static budget sales in dollars. B. Actual sales in dollars are less than the static budget sales in dollars. C. Actual sales in dollars are greater than the master budget sales in dollars. D. Actual net income for the subunit is greater than budgeted net income.

Which of the following causes the master budget variance between the amounts in the master budget and the flexible budget of a revenue​ center? A. The cost of sales B. The number of units sold differs from planned sales levels C. The selling price per unit D. Both the selling price and the number of units sold

The basic difference between a master budget and a flexible budget is that a master budget is: A. Based on one specific level of production, and a flexible budget can be prepared for any production level within the relevant range. B. Only used before and during the budget period and a flexible budget is used only after the budget period. C. Based on a fixed standard whereas a flexible budget allows management latitude in meeting goals. D. Based on one set of sales volume and input prices whereas a flexible budget reflects changes in both sales volume and input prices.

When preparing a performance report for a cost center using flexible budgeting techniques, the planned cost column should be based on the: A. Budget adjusted to the actual level of activity for the same period last year. B. Budget adjusted to the planned level of activity for the same period last year. C. Budget adjusted to the actual level of activity for the period being reported. D. Budget adjusted to the planned level of activity for the period being reported.

Which one of the following statements regarding the difference between a flexible budget and a master or static budget is true? A. A flexible budget is prepared primarily for planning purposes while a static budget is prepared primarily for performance evaluation purposes. B. A flexible budget allows for different total costs at different levels of activity while a master or static budget provides costs for only one level of activity. C. A flexible budget includes only variable costs whereas a static budget includes both variable and fixed costs. D. When sales volume increases, a flexible budget will generally show larger variances than a master or static budget.

The difference between the actual amounts and flexible budget amounts for the actual output achieved is the: A. Volume variance B. Flexible budget variance C. Master budget variance D. Actual budget variance

Within the relevant range, a flexible budget is appropriate for: A. Control of direct materials and direct labor but not variable manufacturing overhead. B. Control of direct materials and direct labor but not selling and administrative expenses. C. Control of direct materials and direct labor but not fixed manufacturing overhead. D. Control of direct materials and direct labor but not intertemporal bifurcated costs.