When using a flexible budget a decrease in activity

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Successful Project Management
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Chapter 7 / Exercise 3
Successful Project Management
Clements/Gido
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17. When using a flexible budget, a decrease in activity within the relevant range: A) decreases variable cost per unit. B) decreases total costs. C) increases total fixed costs. D) increases variable cost per unit. Ans: B AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting
LO: 1 Level: Easy Source: CPA; adapted Garrison/Noreen/Brewer, Managerial Accounting, Twelfth Edition 11- 3
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Successful Project Management
The document you are viewing contains questions related to this textbook.
Chapter 7 / Exercise 3
Successful Project Management
Clements/Gido
Expert Verified
Chapter 11 Flexible Budgets and Overhead Analysis 18. The activity base that is used for a flexible budget for an overhead cost should be: AACSB: Reflective Thinking AICPA BB: Critical Thinking
AICPA FN: Reporting LO: 1 Level: Easy 19. A budget that is based on the actual activity of a period is known as a: AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 1 Level: Easy
20. The fixed manufacturing overhead budget variance equals: AACSB: Reflective Thinking AICPA BB: Critical Thinking
AICPA FN: Reporting LO: 6 Level: Medium 21. Which of the following variances is least significant from a standpoint of cost control? A) materials price variance. B) labor efficiency variance. C) fixed overhead volume variance. D) variable overhead spending variance. Ans: C AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting LO: 6 Level: Medium
11- 4 Garrison/Noreen/Brewer, Managerial Accounting, Twelfth Edition
Chapter 11 Flexible Budgets and Overhead Analysis 22. The manufacturing overhead variance that is a measure of capacity utilization is: AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting LO: 6 Level: Medium
23. If the denominator activity is less than the standard hours allowed for the actual output, one would expect that: AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting
LO: 6 Level: Medium

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