E9 - 1. The master budget is one type of flexible budget....

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1. The master budget is one type of flexible budget. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : flexible budget The master budget is a static budget. 2. A flexible budget is calculated at the start of the budget period. Answer : False Difficulty : 1 Objective : 1 Terms to Learn : flexible budget A flexible budget is calculated at the end of the budget period when actual output is known. 3. Information regarding the causes of variances is provided when the master budget is compared with actual results. Answer : False Difficulty : 2 Objective : 1 Terms to Learn : variance Little information regarding the causes of variances is provided when the master budget is compared with actual results because you are comparing a budget for one level of activity with actual costs for a different level of activity. 4. A favorable variance results when budgeted revenues exceed actual revenues. Answer
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This note was uploaded on 05/20/2010 for the course BUSINESS 06032010 taught by Professor Alberthall during the Spring '10 term at University of the East, Manila.

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E9 - 1. The master budget is one type of flexible budget....

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