Which of the following statements is NOT true?

Which of the following elements are used in calculating Costs in a Flexible Budget?   a. Budgeted unit costs times actual quantities of output   b. Actual unit costs times budgeted quantities of output   c. Budgeted unit costs times budgeted quantities of output   d. Actual unit costs times actual quantities of output

A flexible budget depicted graphically O differs from a CVP graph in that sales revenue is not shown. differs from a CVP graph in the way that fixed costs are shown. O is identical to a CVP graph. O differs from a CVP graph in the way that variable costs are shown.

The production budget is typically prepared prior to the sales budget. True or False True False

None

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

1. A budget is a detailed financial plan that quantifies future expectations and actions relative to acquiring and using resources. a. True b. False   2. Budgets should not be used to provide managers with “pre-approval” for the execution of spending plans. a. True b. False     3. A flexible budget is not designed to change with changes in activity level. a. True b. False   4. The production budget comes before the materials purchases budget. a.True b. False   5. The starting point for the master budget is an assessment of anticipated production next year. a. False b. True

A static budget is appropriate for a. variable overhead costs. b. direct materials costs. c. fixed overhead costs. d. None of these.

What does a flexible budget performance report do that a simple comparison of budgeted to actual results does not do?

In preparing a Master Budget, the starting point and the first budget to be prepared is usually the Production Budget. E True False