The revenue and spending variances are the differences between the flexible budgetand the actual results for the period.TrueFalse

Variations in revenue and spending are important markers for companies to assess their financial…

Answered: The revenue and spending variances are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

An unfavorable activity variance for revenue indicates that activity was less than expected when the master budget was developed. True or False True False
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owe subject-Accounting
Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome
A labor rate variance is due solely to the difference Between budgeted materials price and actual materials price Between budgeted direct labor hours and actual direct labor hours Between budgeted sales volume and actual sales volume Between budgeted labor price and actual labor price
A revenue variance is favorable if the actual revenue exceeds what the revenue should have been for the actual level of activity of the period. Select one: True False
Which of the following statements about fixed overhead variances is FALSE? O The budget variance represents the difference between the original budgeted fixed overhead cost and the applied fixed overhead cost during a period. O An unfavorable volume variance means that a firm's production facilities were under-utilized by producing less units of products than budgeted. O The volume variance is a measure of facility utilization. O Fixed overhead variances consist of a budget variance and a volume variance. Ne: Previous
The labor efficiency variance is the difference between the actual quantity of hours at the standard rate and the standard direct labor hours at the standard rate. A. True B. False
Comment on the statement “A favourable variance is always better than an adverse variance” by considering one behavioural issue involved.
Gross profit volume variance is derived by A. combining sales and cost of sales variances. B. combining sales volume and cost volume variances. C. deducting cost price variance from gross profit variance. D. deducting sales price variance from gross profit variance.
If production is more or less than the standard volume, is it possible that no flexible-budget or production-volume variances would exist? Explain.
The fixed overhead spending variance can be calculated by taking: 1. The difference between the original budget and the actual results. 2. The difference between the flexed budget and the actual results. Which of the above statements are correct? A. Both 1 and 2 B. Neither 1 nor 2 C. 2 only O D. 1 only ...

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The revenue and spending variances are the differences between the flexible budget and the actual results for the period. True False