
Concept explainers
1
Planning budget
It is a budget that a company prepares to get an estimate of its total expenses. This budget uses estimated data and estimated hours.
To prepare: A planning budget for the production department.
2
Flexible budget
Flexible budget is a budget that changes as per the changes in the volumes. It is considered as more useful than the static budget. It shows variable cost and fixed cost incurred by a company separately and shows the total amount of expenses. It considers the actual hours rather than standard hours.
To prepare: A flexible budget for the month march.
3
Spending variance
A spending variance shows the difference between the budgeted or expected expenses and actual expenses. It is either favorable for the company or unfavorable.
To calculate: Amount of spending variance by comparing actual and

Want to see the full answer?
Check out a sample textbook solution
Chapter 9 Solutions
Loose Leaf For Introduction To Managerial Accounting
- An internal auditor's work would most likely affect the nature, timing, and extent of an independent CPA's auditing procedures when the internal auditor's work relates to assertions about the:a. Existence of contingencies.b. Valuation of intangible assets.c. Estimated salvage values of fixed assets.d. Valuation of related party transactions.e. Completeness of accounts payable. is it a or e?arrow_forwardCorrect answer needarrow_forwardPlease give correct answer this financial accounting questionarrow_forward
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningCornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage LearningManagerial AccountingAccountingISBN:9781337912020Author:Carl Warren, Ph.d. Cma William B. TaylerPublisher:South-Western College Pub
- Financial And Managerial AccountingAccountingISBN:9781337902663Author:WARREN, Carl S.Publisher:Cengage Learning,Principles of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage LearningExcel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning





