24 - differences is called Variance Analysis 6 Variance...

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Ch.24 1. Controllable variance 2. Cost variance 3. Efficiency variance 4. Favorable variance 5. Overhead cost variance 6. Price variance 7. Rate variance 8. Quantity variance 9. Spending variance 10. Unfavorable variance 11. Volume variance 12. Standard Cost Multiple Choices 1. Flexible budget expressed variable costs on a per unit basis and fixed cost on a total budget. (T) 2. A fixed budget performance report explains why actual cost differs from budgeted cost. (F) 3. A budget performance report that includes variances usually has variances caused by both price differences and quantity differences. (T) 4. Standard costs provide the basis for accessing their reasonableness of actual cost. (T) 5. The process of examining the differences between actual and budgeted sales or cost and describing them in terms of the amounts that resulted from the price and quantity
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Unformatted text preview: differences is called Variance Analysis . 6. Variance Analysis is the best compliance by using comparison of actual data to both fixed and flexible budget data. 7. What is the internal report that helps management analyze the difference between actual and budgeted performance based on actual sales volumes or other levels of activities and which present the difference between actual budgeted amount as variances is called Flexible budget performance report . 8. Calculation(6): Variances, profit, Budgeted operating income 9. Sales – fixed cost – variable cost = income (2) 10. Variance (2): material 11. (2): labor 14. As volume increases, unit fixed cost decrease and unit variable cost stays . 15. P.998 / If the amount are immaterial, they are just going to be added to or subtracted from Cost of goods sold ....
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This note was uploaded on 04/02/2012 for the course ECON 1 taught by Professor 1 during the Spring '12 term at The University of Oklahoma.

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