Answer:-
Definitions:-
Budget:-Budget is a guess or an expectation.For example,when you go out to buy grocery for a month,you guess how much would be an expense and savings accordingly.
Actual:-Actual is the real expense which you incur.
Variance:- Variance is the difference between the budgeted and actual.
Reasons to investigate variances are as follows:-
Short answer please When should we investigatevariances in actual results vs. budget?
Using a flexible budget, actual results can be compared to what costs should have been at the actual level of activity. True or false?
Which statement is incorrect … ? A. The budget is the plan but actual results are the reality B. Management should at selected intervals review the operating results by comparing the actual results with the budgeted figures C. A budget variance is simply the difference between the actual and budgeted figure D. All variances are considered significant E. Business plans convey a variety of budgets expressing the expected activities of the business for the near future
27. Comparing actual results to a budget based on the actual activity for the period is possible with use of a a monthly budget b. master budget c. flexible budget d. rolling budget
Analytical Worksheet - Question #3 Budget vs Actual Worksheet 25 POINTS You are responsible for completing a budget for an Ambulatory Clinic. Here are the assumptions: INITIAL BUDGET a. The budget anticipated 40,000 inpatient days this year at an average of $750 per day. b. Inpatient expenses were budgeted at $650 per day. c. The budget anticipated 12,000 outpatient visits this year at an average of $475 revenue per visit. d. Outpatient expenses were budgeted at $420 per visit. ACTUAL...
question 1: what information stands out when we compare our flexible budget to our actual budget? ACCT8090 F19 Budget Quiz - Section 2 [Protected View] - Microsoft Excel (Product Activation Failed) X File Home Insert Page Layout Formulas Data Review View Enable Editing Protected View This file originated from an Internet location and might be unsafe. Click for more details. fox АЗ C F G Н M N O P Q R Complete a FLEXIBLE BUDGET to reflect the actual...
Hoppy Corporation compares a monthly flexible budget based on actual operating results to a static planning budget prepared at the beginning of the month. When the actual level of activity is higher than expected, which of the following would typically be expected? Variable costs would show unfavorable variances O Varíable costs would show favorable variances O Fixed costs would show favorable varlances Fixed costs would show unfavorable variances. None of the above. Cosden Corporation is an oil well service company...
Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 13,000 ? 2,000 U ? Sales revenue ? 13,000 F ? ? ? Less: Variable mfg. costs $ 87,750 $ 91,000 ? $ 105,000 Variable mktg/adm.costs ? $ 3,250 U ? $ 4,000 F 30,000 Contribution margin $ 52,000 ? ? $ 6,000 U ? What is the actual sales revenue?
Outdoor Inc recorded the following flex budget and actual results during November 2019: Actual Flex Budget Flex Budget Variance Percentage Variance SALES $215,000 $200,000 COGS $ 90,000 $ 95,000 Gross Profit Operating Expenses $89,000 $81,000 EBIT Earnings Before Interest and Taxes Interest Expense $3,850 $3,450 Income Tax $10,500 $10,500 Net Profit Fill in the missing amounts in the table (Gross Profit, EBIT and Net Profit) Calculate flex budget variance and percentage variance. Include ‘favourable F’ or ‘unfavourable U’ rating for each...
Outdoor Inc recorded the following flex budget and actual results during November 2019: Actual Flex Budget Flex Budget Variance Percentage Variance SALES $215,000 $200,000 COGS $ 90,000 $ 95,000 Gross Profit Operating Expenses $89,000 $81,000 EBIT Earnings Before Interest and Taxes Interest Expense $3,850 $3,450 Income Tax $10,500 $10,500 Net Profit Fill in the missing amounts in the table (Gross Profit, EBIT and Net Profit) Calculate flex budget variance and percentage variance. Include ‘favourable F’ or ‘unfavourable U’ rating for...
Actual Results Flexible Budget Variance Flexible Budget Sales Activity Variance Master Budget Units 13,000 ? 2,000 U ? Sales revenue ? 13,000 F ? ? ? Less: Variable mfg. costs $ 87,750 $ 91,000 ? $ 105,000 Variable mktg/adm.costs ? $ 3,250 U ? $ 4,000 F 30,000 Contribution margin $ 52,000 ? ? $ 6,000 U ? What is the master budget sales revenue?