The variance that highlights the difference between actual sales volume and the master budget sales volume is the sales activity variance. O flexible budget variance. O master budget variance. O MOH volume variance.

The variance that highlights the difference between actual sales volume and the master budget sales volume is the sales activity variance. O flexible budget variance. O master budget variance. O MOH volume variance.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: better system for performance analysis?

A: A flexible budgeting system is a type of budgeting which is based on various sales volumes and it…

Q: After understanding and studying Standard Costing: 1. Which of the following management function is…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Sales budget is primarily concerned with forecasting of what products will be sold in quantities and…

A: The sales budget represents the financial plan that fixes the forecasted sales so that the resources…

Q: When a variance occurs between the budgeted amount and the actual expenditures, it is important to:…

A: A variance is the difference between a budgeted, planned or standard cost and the actual amount…

Q: The flexible budget variance for fixed overhead is known as the A.) Static budget variance. B.)…

A: Flexible budget variance for fixed overhead is the difference between Actual fixed overhead and…

Q: Considering the variance analysis, which of the following statements is true? O a. When there is…

Q: A company using direct costing in its performance evaluation would normally include the following…

A: Direct costing refers to the concept of evaluating the cost or expenses by only considering the…

Q: A Favorable Variance results when (check all that apply) a. Actual costs exceed Budgeted costs…

A: While calculating variances, for costs - If actual costs are lower than the budgeted costs then it…

Q: A spending variance is calculated by comparing the: Multiple Choice The difference between the…

A: Solution: Spending variance is calculated by comparing flexible budget to the actual results.

Q: What are the two components of the static budget variance? How are they calculated?

A: Definition: Static budget variance: The static budget variance is the difference between the…

Q: What are some quantitative and some qualitative reasons for budget variances?

A: Budget variance is a measure used by entities, government organizations, corporations, or…

Q: Which of the following statements is true? I. A revenue variance is unfavorable if the revenue in…

A: Revenue variance is the variance between actual revenue and the expected or budgeted revenue. It…

Q: What can you tell me about variance, as it concerns fixed or variable budgets? What is favorable…

A: The question is related to Standard costing and Budgetory Comtrol. Variance may be defined as the…

Q: The revenue and spending variances are the differences between the flexible budget and the actual…

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

Q: Which budget is prepared for Advertising, Salary, and Market Analysis? A. Operating Budget B. Sales…

A: The question is asking us to identify the type of budget that is typically used to plan for expenses…

Q: Match the definition the term. Terms: Cost variance Overhead cost variance Price variance…

A: The practise of organizing and regulating a company's operating expenses is known as cost…

Q: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

Q: Fixed overhead volume variance is a flexible budget variance. O True False

A: Fixed overheads are those indirect costs which will not change with change in activity level. These…

Q: Which of the following statements is false? All material variances, favorable or unfavorable, need…

A: Standard costing is a management accounting technique that aids in the planning, monitoring, and…

Q: An activity variance is calculated by comparing the: Multiple Choice planning budget to the actual…

A: Activity variance measures the difference between planning budget and the flexible budget.…

Q: Explain the term flexible budget variance.

A: Flexible Budget: It is a type of budget that changes based on the volume of business activity.…

Q: Estimating the effects of changes in budget assumptions, such as determining the impact of an…

A: BUDGET : It is an estimation of REVENUE and EXPENSES. The factors affecting the budgets are…

Q: Of the following pairs of variances found in a flexible budget report, which pair is most likely to…

A: Variance in simple terms means difference or change. In costing variance refers to the difference…

Q: Direct Materials Under normal conditions, Sarah spends $8.40 per unit of materials, and it will take…

A: Material cost variance: Material cost variance is the difference between standard cost of material…

Q: cost variance

A: Variance analysis plays a key role in the functioning of any company. It lets you identify key areas…

Q: An Unfavorable Variance results when (check all that apply) a. Actual costs exceed Budgeted…

A: Variance: The difference between the actual cost or price and the budgeted (standard) cost or price…

Q: Considering the variance analysis, which of the following statements is true?

A: Variance analysis is the analysis which is the analysis only possible when the company has a…

Q: When analyzing an organization's budget using 2-variance analysis, the 2 elements used are volume…

A: The correct answer is: b. price varianceA 2-variance study of an organization's budget includes two…

Q: Compare and contrast a flexible budget and a static budget

A: Budgeting is one of the essential tool that helps to plan an organisation to plan its costs…

Q: Which one of the following is the variance that deals with under or over achievement of budgeted…

A: Budgeted direct labor hours refer to the estimated or planned amount of time that is allocated for…

Q: which formula is correct for budget variance. Please see below: * Static Budget Variance…

A: Static Budget Variance is the difference between the actual results and the static budget = (Actual…

Q: Explain the role of a sales forecast in budgeting. What is the difference between a sales fore-cast…

A: Budgeting is a method of determining how you will spend all your money. This spending plan is known…

Q: In what fundamental ways does activity-based costing differ from traditional costing methods?

A: Costing is a process through which total expenditure incurred in the production or manufacturing of…

Q: What is the difference between a flexible budget based on actual volume and a master budget based on…

A: The correct term for the difference between a flexible budget based on actual volume and a master…

Q: Distinguish among a budget, a performance report, and a variance. Question content area…

A: Introduction:- Budgeting plays vital role in every organization or business or company or person. it…

Q: What are the relations among standard costs, flexible budgets, variance analysis and managment by…

A: Because actual costs cannot be predicted in advance, standard costs are estimations of actual costs…

Q: G. H. I. J. Budget Perf

A: The term with definition as,

Q: Which one of the following best describes the direct material price variance? O a. The difference…

A: Direct Material price variance can be calculated by using the following formula: (AQ × SP ) -…

Q: Which budget is prepared for Advertising, Salary, and Market Analysis? A. Operating Budget B. Sales…

A: The question is asking us to identify the type of budget that is typically used to plan for expenses…

Q: The Flexible-Budget Variance is the sum of a. The static-budget variance and the sales-volume…

A: Flexible-Budget Variance = Actual results - Flexible results

Question

The variance that highlights the difference between actual sales volume and the master budget sales volume is the
sales activity variance.
O flexible budget variance.
O master budget variance.
O MOH volume variance.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduce to Master budget and Flexible Budget

VIEW

Step 2: Working for correct or incorrect reasons

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Cop
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.
is this correct?
Is the budgeted price used for the static budget or the flexible budget?
In variance analysis, Adverse and Favourable variances are subjective to the type of variance being calculated. What type of variance determines a variance favourable or adverse when the budgeted is greater than the actual?What type of variance determines a variance favourable or adverse when the budgeted is less than the actual?
Management Accounting Question (Qualitative Short Answer) a. Why is the sales forecast the starting point in budgeting? b. What is a perpetual budget? c. Which is a better basis for evaluating actual results: budgeted performance or past performance? Why? d. The materials price variance can be computed at what two different points in time? Which point is better and why? e. What effect, if any, would you expect purchasing poor-quality materials to have on direct labor variances? f. Distinguish between ideal and practical standards. g. Costs associated with the quality of conformance can be broken down into four broad groups. What are these four groups and how do they differ? h. What is likely the most effective way to reduce a company's total quality costs? i. What are the three main uses of quality cost reports?
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
A budget that adjusts to the changes in volume of production or output is called production budget. Select one: O True O False
How do managers use budgets to control business activities?a) Match the concept (by number) to the correct terminology. 1. Static Budget2. Budget Performance Report3. Variance4. Static Budget Variance5. Flexible Budget6. Flexible Budget Variance7. Sales Volume Variance______ A budget prepared for various levels of sales volume.______ The difference between actual results and the expected results in the flexible budget for the actual units sold. ______ The difference between the expected results in the flexible budget for the actual units soldand the static budget. _____ The difference between actual results and the expected results in the static budget. _____ A report that summarizes the actual results, budgeted amounts, and the differences. _____ A budget prepared for only one level of sales volume. _____ The difference between an actual amount and the budgeted amount; labeled as favorable if it increases operating income and unfavorable if it decreases operating income. In…
Matching terms Match each term to the correct definition.