Which statement is incorrect … ? A. The budget is the plan but actual results are...
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
Homework Answers
| D. All variances are considered significant | Correct Option |
| A variance should be indicated favorable or unfavorable. A favorable variance is one where actual revenue is higher than budgeted, or when expenses are lower than predicted. | |
| The variances are considered material it should be investigated to determine the cause and find the solution. If the variance is subjective and different depending on the company and relative size of the variance. | |
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Which statement is incorrect … ?
A. The budget is the plan but actual results are...
Performance Report, June 2017 Actual Static Results Budget Units (pounds) 390,000 380,000...
Performance Report, June 2017 Actual Static Results Budget Units (pounds) 390,000 380,000 Revenues $2,203,500 $2,166,000 Variable manufacturing costs 1,423,500 1,368,000 Contribution margin $780,000 $798,000 SteveSteve AdlerAdler, the business manager for ice-cream products, is pleased that more pounds of ice cream were sold than budgeted and that revenues were up.Unfortunately, variable manufacturing costs went up, too. The bottom line is that contribution margin declined by $ 18 comma 000$18,000, which is less thanless than 11% of the budgeted revenues of $...
Budget top down budget budgetary control Select each of the terms with the best description of...
Budget
top down budget
budgetary control
Select each of the terms with the best description of its purpose. Terms Budgeting Definitions 1. Planning future business actions and expressing them as formal plans 2. A comprehensive business plan that includes operating investing, and financing budgets 3. Employees who will be evaluated by a budget help prepare it 4 Shows expected cash inflows and outflows and helps determine financing needs 5. An approach that requires all expenses to be justified for each...
QUESTION 16 Which of the following can be a problem with participative budgeting? Budget-based incentives lead...
QUESTION 16 Which of the following can be a problem with participative budgeting? Budget-based incentives lead to incorrect information about projected costs and sales (budgetary slack) being communicated to higher level management. All the other answers. Production budgets are established based on unrealistically low sales forecasts, leading to production being short of materials and labor. Conflicts of interest when lower level managers are evaluated by comparing actual results to the budget. 2 points QUESTION 17 Which component of the...
Outdoor Inc recorded the following flex budget and actual results during November 2019: Actual Flex Budget...
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...
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...
You have been assigned for reviewing the actual and budgeted figures of the variable manufacturing overhead...
You have been assigned for reviewing the actual and budgeted figures of the variable manufacturing overhead of straight umbrellas at Ombrelloni Felici (OF). The management at OF argues there are no evident issues with the variable manufacturing overhead budget as the static-budget variance is often favourable, which proves the budgeting process works quite well. The management at OF also argues the employees at the production line of straight umbrellas are always highly efficient because of the consistently favourable efficiency variances....
A budget is a plan by an individual or company for spending it resources which is...
A budget is a plan by an individual or company for spending it resources which is based on experience and future expectation of the project or business (Hilton, 2016). There are various types of budget like cash budget, performance budget, sales budget, production budgets, planning budgets, capital budgets etc. I work in multifamily property management and we use a Participative budgeting. With multifamily properties there are different costs that are associated, and the participative budgeting allows employees in the company...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000...
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
1. The master budget A. Shows forecasted and actual results B. Reflects controllable costs only C....
1. The master budget A. Shows forecasted and actual results B. Reflects controllable costs only C. Can be used to determine manufacturing cost variances D. Contains the operating budget 2. The master (comprehensive) budget A. Shows the forecasted and actual results B. Reflects controllable costs only C. Can be used to determine manufacturing cost variances D. Contains both financial and operating budgets 3. Zero-base budgeting has which of the following as its objective? A. To base the current year's budget...
x Data Table Actual Results 966 Flexible Budget Static Budget 885 Allocated Amount 1,449 1,932 1,770...
x Data Table Actual Results 966 Flexible Budget Static Budget 885 Allocated Amount 1,449 1,932 1,770 Output units Machine-hours Machine-hours per output unit Variable MOH costs Variable MOH costs per machine-hour Fixed MOH costs Fixed MOH costs per machine-hour 1.50 $ 68,103 $ 85,008 $ $ $ 350,235 $ 341,610 $ 2.00 77,880 $ 85,008 44.00 $ 376,400 193.00 Print Done Chef Whiz manufactures premium food processors. The following are some manufacturing overhead data for Chef Whiz for the year...
Budget
top down budget
budgetary control
Select each of the terms with the best description of its purpose. Terms Budgeting Definitions 1. Planning future business actions and expressing them as formal plans 2. A comprehensive business plan that includes operating investing, and financing budgets 3. Employees who will be evaluated by a budget help prepare it 4 Shows expected cash inflows and outflows and helps determine financing needs 5. An approach that requires all expenses to be justified for each...
You have been assigned for reviewing the actual and budgeted figures of the variable manufacturing overhead of straight umbrellas at Ombrelloni Felici (OF). The management at OF argues there are no evident issues with the variable manufacturing overhead budget as the static-budget variance is often favourable, which proves the budgeting process works quite well. The management at OF also argues the employees at the production line of straight umbrellas are always highly efficient because of the consistently favourable efficiency variances....
Actual Results Flexible Budget Variance Flexible Budget Sales Volume Static Variance Budget Units 12,000 12,000 15,000 S Sales Revenue $ 2,52,000 12,000 | F | $ 2,40,000 60,000 $3,00,000 Less: Variable Expenses 84,000 12,000F 96,000 24,000 F S 1,20,000 Contribution margin $1,68,000 24,000 $1,44,000 36,000 U $1,80,000 S Less: Fixed Expenses $ 1,50,000 5,000 $1,45,000 None S 1,45,000 Operating Income / (loss) $ 18,000 19,000 FS -1,000 36,000 U S 35,000 Look at the two outside columns - how was...
x Data Table Actual Results 966 Flexible Budget Static Budget 885 Allocated Amount 1,449 1,932 1,770 Output units Machine-hours Machine-hours per output unit Variable MOH costs Variable MOH costs per machine-hour Fixed MOH costs Fixed MOH costs per machine-hour 1.50 $ 68,103 $ 85,008 $ $ $ 350,235 $ 341,610 $ 2.00 77,880 $ 85,008 44.00 $ 376,400 193.00 Print Done Chef Whiz manufactures premium food processors. The following are some manufacturing overhead data for Chef Whiz for the year...
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