Question

10. WadCo plans to sell 100 units during the month of August. If the company has 250 units on hand at the start of the month, and plans to have 200 units on hand at the end of the month, how many units must be produced during the month? A) 100 B ) 50 C) 200 D) 250 E) 550 11. Standards at times are referred to as: A) estimates B) budgets C) actual D) A&B E) all of these 12. Which of the following comparisons best isolates the impact that changes in volume have on performance? A) static planning budget & flexible budget B) static planning budget & actual results C) flexible budget & actual results D) master budget & static planning budget E) none of these 13. A flexible budget is a budget that:

Answer 1

Solution to question 10

B) 50

	Number of units sold during the month of August	100
Add:-	Number of units proposed to be held at the end of the month	200
Less:-	Number of units actually in hand at the beginning of the month	250
	Number of units purchased during the month	50

Solution to question 11

B) Budgets

Because budget is published in a way that outlines the standards. However, Estimates are approximated future allocation made based on resources to achieve desired results.

Solution to question 12

C) Flexible budget and actual results

Flexible Budget is the best instrument to compare with the actual results to identify the volume variance.