3rd Edition

ISBN: 9781323761434

Author: Horngren

Publisher: PEARSON C

Concept explainers

A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It…

Sales Budget and Selling

A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future…

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Textbook Question

Chapter 23, Problem S23.1SE

Matching terms

Learning Objective 1

Match each tern to the correct definition.

Terms

Definitions

a. Flexible budget
b. Flexible budgetvariance
c. Sales volume variance
d. Static budget
e. Variance

1. A summarized budget for several levels of volume that separates variable costs from fixed costs.
2. A budget prepared for only one level of sales.
3. The difference between an actual amount and the budgeted amount.
4. The difference arising because the company actually earned more or less revenue, or incurred more or less cost, than expected for the actual level ofoutput.
5. The difference arising only because the number of units actually sold differs from the static budget units.

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Chapter 23, Problem 20RQ

Chapter 23, Problem S23.2SE

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Chapter 23 Solutions

ACCOUNTING PRINCIPLES V1 6/17 >C<

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