MANAGERIAL ACCOUNTING FOR MANGER CONNEC
6th Edition
ISBN: 9781266809132
Author: Noreen
Publisher: MCG
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Chapter 9, Problem 9.9Q
To determine
Introduction: Under a flexible budget, to compare the actual performance (revenues and costs) with the budgeted performance (revenues and costs) a flexible budget performance report is used by a business enterprise at several levels of activity. In simple words, this report compares the actual output or results with the budgeted (forecasted budget) results for a specific time period.
To explain: The performance of flexible budget performance report which is not possible for a simple comparison of budget to actual results to do.
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What assumption is implicitly made about cost behavior when a budget is directly compared toactual results? Why is this assumption questionable?
What assumption is implicitly made about cost behavior when actual results are directly compared to a static planning budget? Why is this assumption questionable?
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Chapter 9 Solutions
MANAGERIAL ACCOUNTING FOR MANGER CONNEC
Ch. 9 - Prob. 9.1QCh. 9 - Prob. 9.2QCh. 9 - Prob. 9.3QCh. 9 - Prob. 9.4QCh. 9 - Prob. 9.5QCh. 9 - Prob. 9.6QCh. 9 - Prob. 9.7QCh. 9 - Prob. 9.8QCh. 9 - Prob. 9.9QCh. 9 - Prob. 9.10Q
Ch. 9 - The Excel worksheet form on the next page is to be...Ch. 9 - Prob. 1TF15Ch. 9 - Prob. 9.1ECh. 9 - Prob. 9.2ECh. 9 - Prob. 9.3ECh. 9 - Prob. 9.4ECh. 9 - Prob. 9.5ECh. 9 - Prob. 9.6ECh. 9 - Prob. 9.7ECh. 9 - Prob. 9.8ECh. 9 - Prob. 9.9ECh. 9 - Prob. 9.10ECh. 9 - Prob. 9.11ECh. 9 - Prob. 9.12ECh. 9 - Prob. 9.13ECh. 9 - Prob. 9.14ECh. 9 - Prob. 9.15ECh. 9 - Prob. 9.16ECh. 9 - Prob. 9.17PCh. 9 - Prob. 9.18PCh. 9 - Prob. 9.19PCh. 9 - Prob. 9.20PCh. 9 - Prob. 9.21PCh. 9 - Prob. 9.22PCh. 9 - Prob. 9.23PCh. 9 - Prob. 9.24CCh. 9 - Prob. 9.25CCh. 9 - Prob. 9.26C
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- Which of the following is not a part of budgeting? A. planning B. finding bottlenecks C. providing performance evaluations D. preventing net operating lossesarrow_forwardWhat are the advantages and disadvantages of the bottom-up budgeting approach?arrow_forwardWhen would a static budget be effective in evaluating a managers performance?arrow_forward
- What assumption is implicitly made about cost behavior when all of the items in a static planning budget are adjusted in proportion to a change in activity? Why is this assumption questionable?arrow_forwardWhat is a static budget performance report?arrow_forwardDefine the terms relative-performance (relative-improvement) contract and rolling financial forecast. What role for these is envisioned by critics of the traditional budgeting process?arrow_forward
- Which of the following is not a part of budgeting?A. planningB. finding bottlenecksC. providing performance evaluationsD. preventing net operating lossesarrow_forwardWhat type of procedure is a Budget vs. Actual comparison?arrow_forwardSometime the budgetary performance is seems to be a misleading and less effective if it is consider as a standard. Can you justify? Give an example where neededarrow_forward
- Compare flexible budget system from traditional budget system, which is the better system for performance analysis?arrow_forwardindicate yes if it describes a potential benefit of budgeting orno if it describes a potential negative outcome of budgeting. Budgets are useful in assigning blame for unexpected results.arrow_forwardHow are budget variances calculated and used as performance measures? Provide numerical example?arrow_forward
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