Responsibility report of revenue center shall be prepared for finding the variances in performances.The Flexible budget is prepared by adjusting the master budgeted revenue (Static budgeted revenue) on the basis of actual level of activity. The difference between flexible and static budgeted revenue is the sales volume variance (as it is due to change in level of activity). The actual level of activity increases (i.e. flexible budgeted revenue is more than Static budgeted revenue), the variance will be favorable and vice-versa. The Unfavorable Sales Volume variance need to be investigated for the reasons of its occurrence. The method of preparation of performance report of revenue center and allocation of total variance among sales volume variance and flexible budget variance need to be determined.

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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

Responsibility report of revenue center shall be prepared for finding the variances in performances.The Flexible budget is prepared by adjusting the master budgeted revenue (Static budgeted revenue) on the basis of actual level of activity. The difference between flexible and static budgeted revenue is the sales volume variance (as it is due to change in level of activity). The actual level of activity increases (i.e. flexible budgeted revenue is more than Static budgeted revenue), the variance will be favorable and vice-versa. The Unfavorable Sales Volume variance need to be investigated for the reasons of its occurrence.

The method of preparation of performance report of revenue center and allocation of total variance among sales volume variance and flexible budget variance need to be determined.

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Answer 2

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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

Responsibility report of revenue center shall be prepared for finding the variances in performances.The Flexible budget is prepared by adjusting the master budgeted revenue (Static budgeted revenue) on the basis of actual level of activity. The difference between flexible and static budgeted revenue is the sales volume variance (as it is due to change in level of activity). The actual level of activity increases (i.e. flexible budgeted revenue is more than Static budgeted revenue), the variance will be favorable and vice-versa. The Unfavorable Sales Volume variance need to be investigated for the reasons of its occurrence.

The method of preparation of performance report of revenue center and allocation of total variance among sales volume variance and flexible budget variance need to be determined.

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Answer 3

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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

Responsibility report of revenue center shall be prepared for finding the variances in performances.The Flexible budget is prepared by adjusting the master budgeted revenue (Static budgeted revenue) on the basis of actual level of activity. The difference between flexible and static budgeted revenue is the sales volume variance (as it is due to change in level of activity). The actual level of activity increases (i.e. flexible budgeted revenue is more than Static budgeted revenue), the variance will be favorable and vice-versa. The Unfavorable Sales Volume variance need to be investigated for the reasons of its occurrence.

The method of preparation of performance report of revenue center and allocation of total variance among sales volume variance and flexible budget variance need to be determined.

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Answer 4

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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