Accounting q's-1 - A planning budget is prepared before the...

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True False An unfavorable activity variance for a cost indicates that spending was higher than it should have been for the actual level of activity for the period. True False A revenue variance is unfavorable if the actual revenue is less than what the revenue should have been for the actual level of activity for the period. True False A favorable spending variance occurs when the actual cost is less than the amount of that cost in the flexible budget. True False If the actual level of activity is 4% more than planned, then the fixed costs in the static budget should be increased by 4% before comparing them to actual costs. True False Feiner Clinic uses client-visits as its measure of activity. During December, the clinic budgeted for 2,350 client-visits, but its actual level of activity was 2,380 client-visits. The clinic has provided the following data concerning the formulas to be used in its budgeting: Fixed element per month Variable element per client-visit Revenue 0 $70.70 Personnel expenses $42,000 $24.50 Medical supplies
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Accounting q's-1 - A planning budget is prepared before the...

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