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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Two standards that are established for evaluating budget performance are the cost standard and the efficiency standard. Explain the difference between the two standards and give an example of each. Why is it important to measure the actual results against both standards?
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
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.
hich of the following statements is true? A budget reconciliation report shows the difference between actual profit and budgeted profit and does not show the other variances. Comparing the flexible budget to the as-if budget isolates a change in input price (e.g. budgeted input price vs. actual input price). Sales quantity (budgeted sales volume vs. actual sales volume) is the only item which differs between the master budget and the flexible budget. Activity-based costing is not used to evaluate customer profitability.
is this correct?
The Production Budget should be prepared before the Direct Materials and Direct Labor Budgets. TRUE FALSE
Is the budgeted price used for the static budget or the flexible budget?
Explain your answer and do not copy from others sources
In the executing stage of management cycle, managers check for variances, between budgets and actual performance. Select one: O True O False
The profit and liquidity budget reflects periods, while a balance sheet budget shows a situation at a specific time. choose an alternative False True

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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