Acct 102 Chap 8

Acct 102 Chap 8 - (standard sales price times standard...

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Acct 102 – Chap 8 Budget slack is the difference between inflated and realistic standards. A favorable variance occurs when actual costs are lower than standard costs or when actual sales are higher than standard sales. Flexible budgets show expected revenues and costs at a variety of different activity levels. Flexible budget variances represent the differences between budgets based on standard amounts at the actual level of activity and the actual results. A sales volume variance is the difference between sales based on a static budget
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Unformatted text preview: (standard sales price times standard level of activity) and sales based on a flexible budget (standard sales price times actual level of activity). Static budgets are budgets that are based solely on the level of planned activity and therefore remain constant even when volume of activity changes. An unfavorable variance occurs when actual costs exceed standard costs or when actual sales are less than standard sales. The differences between standard and actual amounts are known as variances ....
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This note was uploaded on 03/31/2011 for the course ACCT 102 taught by Professor Wang during the Spring '11 term at Adelphi.

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