Flexible budget variance : The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company. Static Budget performance Report: The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity. To determine: Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

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Answer 1

Question

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

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Answer 2

Question

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Expert Solution & Answer

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Answer 3

Question

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Expert Solution & Answer

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Answer 4

Question

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Expert Solution & Answer

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Answer 5

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Answer 6

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Answer 7

Chapter 24, Problem 6CP

To determine

Flexible budget variance:

The variance derived from the difference between the actual results and flexible budget is called a flexible budget variance. As both the actual results and flexible is prepared based on the actual level of activity, the comparison shows the true variance in revenue and spending of a company.

Static Budget performance Report:

The comparison between the actual result and flexible budget shows the static budget performance of a company. The variance derived from static budget performance report always comes with the discrepancy of difference in the level of activity.

To determine:

Why the flexible budget performance report provides more useful information to Trolley’s managers than the static budget performance report. What insights can Trolley’s managers draw from this performance report?

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 24 - Prob. 1QC Ch. 24 - Which is not one of the potential advantages of...Ch. 24 - The Quaker Foods division of PepsiCo is most...Ch. 24 - Which of the following is not a goal of...Ch. 24 - Which of the following balanced scorecard...Ch. 24 - The performance evaluation of a cost center is...Ch. 24 - Prob. 7QC Ch. 24 - Prob. 8QC Ch. 24 - Prob. 9QC Ch. 24 - Prob. 10QC

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