Which ONE of the following is true? a. Assume all costs are fixed when creating a flexible budget b. None of the other available answers are true c. There can only be one cost driver d. Unfavorable activity variances for costs will typically accompany a favorable activity variance for revenue. e. Variances are classified according to the impact on revenue f. Assume all costs are variable when creating a flexible budget

Which ONE of the following is true? a. Assume all costs are fixed when creating a flexible budget b. None of the other available answers are true c. There can only be one cost driver d. Unfavorable activity variances for costs will typically accompany a favorable activity variance for revenue. e. Variances are classified according to the impact on revenue f. Assume all costs are variable when creating a flexible budget

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter7: The Master Budget And Flexible Budgeting

Section: Chapter Questions

Problem 20Q: In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a...

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The variable overhead efficiency variance has nothing to do with efficient use of variable overhead. Do you agree or disagree? Why?
Which of the following statements is true? Multiple Choice The spending variance for a fixed expense will equal zero when the planned level of activity equals the actual level of activity. The spending variance for a fixed expense will be favorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense. The spending variance for a fixed expense will be favorable if the amount of the expense contained in the flexible budget is less than the actual amount of the expense. The spending variance for a fixed expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense.
Why Fixed Overhead Volume Variance is said to be a favorable variance when the actual output is more than the budgeted output?
Which of the following statements is true? Multiple Choice о The spending variance for a fixed expense will equal zero if the actual expense incurred equals the expense expected for the actual level of activity. The spending variance for a fixed expense will be unfavorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense. The spending variance for a fixed expense will be unfavorable if the amount of the expense contained in the flexible budget is less than the planned amount of the expense. The spending variance for a fixed expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense.
Which of the following is NOT true? Multiple Choice An activity variances describes the cost difference due to producing more/less units than expected. An unfavorable expense activity variance is bad. A spending variance can be divided into a price and quantity variance A spending variance describes the cost difference due to spending more/less to make a unit than expected.
Which of the following statements is true? A) The spending variance for a variable expense will usually equal zero. B) The spending variance for a variable expense will be favorable if the amount of the expense contained in the flexible budget is greater than the actual amount of the expense. C) The spending variance for a variable expense will be favorable if the amount of the expense contained in the flexible budget is less than the actual amount of the expense. D) The spending variance for a variable expense can be favorable or unfavorable depending on whether the actual expense is greater than or less than the planned expense.
When comparing the static planning budget to actual activity, a problem that arises when actual activity is higher than budgeted activity is that O net income is higher than expected but all or most expense variances are unfavorable Othere are no revenue or expense variances O net income is lower than expected but all or most expense variances are favorable
A Favorable Variance results when (check all that apply) a. Actual costs exceed Budgeted costs b. Budgeted costs exceed Actual costs c. Actual revenues exceed Budgeted revenue d. Budgeted revenue exceed Actual revenues
1. What is the activity variance for the revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect) 2. What is the spending variance for the cost of ingredients? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effec
An adverse cost variance occurs when actual cost is:a) more than budgeted cost at actual volumesb) less than budgeted cost at actual volumesc) the same as than budgeted cost at estimated volumesd) more than budgeted cost at estimated volumes
Which of the following statements is false? Standard costs (e.g., how much should be paid for each unit of input) are benchmarks for measuring performance. Managers should investigate only unfavorable variances. Variance analysis enhances responsibility accounting. A variance is the difference between the budgeted amount and actual amount.
Fixed overhead volume variance is a flexible budget variance. O True O False