Which of the following statements concerning performance reports is incorrect? The activity level used to populate the flexible budget is based on the actual "units." A favorable sales revenue flexible budget variance would indicate that the actual sales price was higher than the sales price used in the master budget. All material flexible budget variances should be investigated. The master budget variance is equal to the sum of the volume variance plus the flexible budget variance. O The master budget and the flexible budget use different cost behavior equation to calculate budgeted expenses.

Which of the following statements concerning performance reports is incorrect? The activity level used to populate the flexible budget is based on the actual "units." A favorable sales revenue flexible budget variance would indicate that the actual sales price was higher than the sales price used in the master budget. All material flexible budget variances should be investigated. The master budget variance is equal to the sum of the volume variance plus the flexible budget variance. O The master budget and the flexible budget use different cost behavior equation to calculate budgeted expenses.

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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Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs? Please explain. Considering the flexible budgeting topic, it is important to look at this analysis as a significant contribution to the management of the company. Knowing what the bottom line profit or loss is important. But what is more important is to understand how your actual results varied in terms of units sold versus how the actual cost of each unit differed from the budget. What is a good example of this?
The Flexible-Budget Variance is the sum of a. The static-budget variance and the sales-volume variance b. The sales-volume variance and the efficiency variance c. The price variance and the efficiency variance d. The static-budget variance and the price variance
1.What is the labor rate variance ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 2. What is the variable overhead efficiency variance ? ( indicate the effect of each variance by selecting "f" for favorable, U for unfavorable, and None for no effect and round your final answer to the nearest whole number) 3. what is the variable overhead rate variance?
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.
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Rodolfo works at Johnson Incorporated and is tasked with measuring costs. When Rodolfo identifies that actual sales are less than expected sales, what type of variance did Rodolfo identify? A Fixed cost volume variance B Sales price variance C Favorable variance D Unfavorable variance
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