1.
Introduction:
Under a flexible budget, compare the actual performance (revenues and costs) with the budgeted performance (revenues and costs) a flexible budget performance report is used by a business enterprise at several levels of activity.
A flexible budget performance report for the year that represents both spending and activity variances.
2.
Introduction:
Spending variance:
A spending variance refers to the difference between planned and actual costs or expenses which represent the overall positive or negative output or performance of the company.
The reason if the board of directors of the theater can be pleased with how well costs were controlled during the year.
3.
Introduction:
Average cost:
Average cost refers to the cost of production per unit that affects the price of goods and services.
The accuracy of figures for the average cost per production and the average cost per performance which would be predicting the cost of a new product or of an additional performance of a particular production.
Want to see the full answer?
Check out a sample textbook solution
Chapter 9 Solutions
CONNECT ONLINE ACCESS F/MANAGERIAL ACC.
- Please explain the correct approach for solving this general accounting question.arrow_forwardMarcos is the sole owner and operator of Great Jet Company. As of the end of its accounting period, December 31, Year 1, Great Jet Company has assets of $997,000 and liabilities of $277,000. During Year 2, Marcos invested an additional $49,000 and withdrew $36,000 from the business. What is the amount of net income during Year 2, assuming that as of December 31, Year 2, assets were $875,000, and liabilities were $260,000?arrow_forwardUzo Haulers Co. is a company that manufactures industrial trucks. During the year, Uzo purchased $1,200,000 of direct materials and placed $1,275,000 worth of direct materials into production. Uzo’s beginning balance in the Materials Inventory account was $310,000. What is the ending balance in Uzo’s Materials Inventory account?arrow_forward
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College