Revenue and spending variance : The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced. To prepare: A flexible budget performance report.

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Answer 1

Question

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

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Answer 2

Question

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

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Answer 3

Question

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

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Answer 4

Question

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

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Answer 5

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

Answer 6

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

Answer 7

Chapter 9, Problem 19P

1.

To determine

Concept Introduction:

Revenue and spending variance: The difference between the actual and budgeted revenue and expenses is stated as revenue and spending variance. It helps the organization to compare the actual results with the budget and analyze those differences. The company can achieve its desired profit with favorable price variance. It has a positive impact on profitability. An unfavorable variance suggests negative profits because, with the increased costs, the profits are reduced.

To prepare: A flexible budget performance report.

Answer 8

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

Answer 9

2.

To determine

Concept Introduction:

Activity Variance: A revenue or cost item in the flexible budget differs from the same item in the static planning budget by an activity variance. The difference between the actual level of activity used in the flexible budget and the level of activity assumed in the planning budget is the sole cause of an activity variance.

The activity variance.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 9 - Prob. 1Q Ch. 9 - What is a flexible budget and how does it differ...Ch. 9 - Prob. 3Q Ch. 9 - Why is it difficult to interpret a difference...Ch. 9 - What is an activity variance and what does it...Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - Prob. 10Q

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Chapter 9 Solutions