Week 11 - Flexible Budget and Variance Flashcards Preview

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Flashcards in Week 11 - Flexible Budget and Variance Deck (13)
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1
Q

Variance Analysis

A

actual and budget results are compared

2
Q

static budget

A

using budgeted selling prices, costs and budgeted sales volume

3
Q

flexible budget

A

prepared using budgeted selling prices and costs and ACTUAL sales volume

4
Q

Flexible budget variances

A

comparing info from static budget, flexible budget and actual budget

5
Q

sales volume variance

A

difference between static budget and flexible budget

6
Q
The variable-cost portion of the flexible budget variance is known as the:
Select one:
a. flexible revenue variance
b. cost variance 
c. price variance
d. sales-volume variance
A

b

7
Q

If the actual labour rate is less than the budgeted labour rate, the labour cost variance will be unfavourable.
Select one:
True
False

A

False

8
Q
Variance analysis is a control process, also known as:
Select one:
a. Flexible budgeting 
b. Management by exception
c. A feedback loop
d. Static budgeting
A

C

9
Q

A static budget is prepared using:
Select one:
a. the sum of selling-price and flexible budget variances
b. the difference between the selling-price and flexible budget variances
c. the difference between the sales-volume and flexible budget variances
d. the sum of the sales-volume and flexible budget variances

A

d

10
Q
The revenue portion of the flexible budget variance is known as the:
Select one:
a. flexible revenue variance 
b. price variance
c. cost variance
d. sales-volume variance
A

B

11
Q
If the static budget variance is $2,000 F, and the flexible-budget variance is $2,200 U, what is the sales-volume variance?
Select one:
a. $200 F
b. $4,200 F
c. $4,200 U 
d. $200 U
A

B

12
Q

A flexible budget is prepared using:
Select one:
a. budgeted selling prices, budgeted costs, and actual sales volume
b. actual selling prices, budgeted costs, and actual sales volume
c. budgeted selling prices, budgeted costs, and budgeted sales volume
d. actual selling prices, actual costs and actual sales volume

A

a

13
Q
Suppose a hotel’s actual housekeeping cost per room and budgeted housekeeping cost per room were both $20. The actual quantity of rooms sold was 50 greater than the budgeted quantity of rooms sold. What is the housekeeping cost quantity variance?
Select one:
a. $2,000 U
b. $1,000 F 
c. $0
d. $1,000 U
A

D
Cost Variance = (Actual Quantity × Budgeted Cost) − (Budgeted Quantity × Budgeted Cost)

OR

(Actual Quantity – Budgeted Quantity) × Budgeted Cost = 50 × $20 = $1,000 U