Concept Introduction Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results. Flexible Budget: It is a type of budget that changes based on the volume of business activity. Static Budget: It is a type of budget that does not change as the volume of business activity changes. Flexible Budget Variance : It is the difference between the flexible budget and the actual results of a subunit’s items. Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget. 1. To Complete: The responsibility report for the given subunit.

Question

Want to see the full answer?

Answer 1

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

To determine

2.

The type of responsibility center this subunit is.

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Davenport Sweets Inc. sold its chocolate division, resulting in a loss of $80,000. Assuming a tax rate of 30%, the loss on this disposal will be reported on the income statement at what amount?

What is the amount of current liabilities the firm's has?

Help me this general accounting questions

Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

To determine

2.

The type of responsibility center this subunit is.

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

To determine

2.

The type of responsibility center this subunit is.

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

To determine

2.

The type of responsibility center this subunit is.

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

To determine

2.

The type of responsibility center this subunit is.

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Answer 6

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

Answer 7

Chapter 24, Problem E24.23E

To determine

Concept Introduction

Responsibility Center: It is a subunit of a company, headed by a manager who holds responsibility towards its activities and results.

Flexible Budget: It is a type of budget that changes based on the volume of business activity.

Static Budget: It is a type of budget that does not change as the volume of business activity changes.

Flexible Budget Variance: It is the difference between the flexible budget and the actual results of a subunit’s items.

Sales Volume Variance: It refers to the change in revenue, or profit (in case of absorption costing), or contribution (in case of marginal costing) caused by the difference between the actual and budgeted sales units. For a revenue center, sales volume variance is the difference between the actual and expected number of units sold, multiplied by the budgeted price per unit; it is also the difference between the flexible budget and static budget.

1.

To Complete: The responsibility report for the given subunit.

Answer 8

To determine

2.

The type of responsibility center this subunit is.

Answer 9

To determine

2.

The type of responsibility center this subunit is.

Answer 10

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Answer 11

To determine

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

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

Concept explainers

Videos

2.

The type of responsibility center this subunit is.

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Want to see the full answer?

Chapter 24 Solutions

Concept explainers

Videos

2. The type of responsibility center this subunit is.

3. The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.

Want to see the full answer?

Chapter 24 Solutions

2.

The type of responsibility center this subunit is.

3.

The items that should be investigated if part of management’s decision criteria is to investigate all variances exceeding $10,000.