Homework Answers
| This statement is a true. | TRUE |
| Static budgets are planning budgets. When planning activity level and actual activity level both are equals, then the planning budget can be used to control the actual level of activity. | |
| However, when planning activity level and actual activity level both are not equals, then controlling of actual activity level is done by a flexible budget rather than a static budget. | |
| A flexible budget can be prepared using the static data based on actual activity level. |
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Static budgets are suitable for planning, however they can be inadequate for control if the actual...
Static budgets are suitable for planning if the actual level of activity during the period does...
Static budgets are suitable for planning if the actual level of activity during the period does not significantly diffe Select one: True False
Hoppy Corporation compares a monthly flexible budget based on actual operating results to a static planning...
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...
ALL TRUE OR FALSE QUESTIONS: A) Differences between the static planning budget and the flexible budget...
ALL TRUE OR FALSE QUESTIONS: A) Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. B) Fixed costs should not be included in a flexible budget because they do not change when the level of activity changes. C) An activity variance is the difference between an actual revenue or cost and the revenue or cost in the flexible budget that is adjusted...
Discuss the advantages of flexible budgets used by a company over static budgets as a tool...
Discuss the advantages of flexible budgets used by a company over static budgets as a tool for planning and as a tool for control. Discuss the merits of each advantage. Please include examples so that we can assess your knowledge. (2) Management systems have three basic components : Planning, control, and feedback. In your response determine their relevance to management. (3) The following data relates to Merrick Ltd., a single product company who manufactures vaccines: Variances for October: DIRECT MATERIAL...
Planning and Control- Budgeting Management and cost accounting requires the accumulation of costs for a number...
Planning and Control- Budgeting Management and cost accounting requires the accumulation of costs for a number of different purposes, i.e. stock valuation and profit measurement, decision making and planning and control. The budgeting process has been traditionally used to plan an organisations’ activities into the future. A budget can be described as an approved financial plan, reflecting expectations for a defined, future period of time. Budgets also serve an as important framework for performance evaluation and control by holding individuals...
Budgets can be useful tools for planning and control, but they can also prevent challenges for...
Budgets can be useful tools for planning and control, but they can also prevent challenges for many managers and spur unintended negative consequences. Some companies have begun exploring alternatives to traditional master budgeting. Carefully review each resource and provide a thorough assessment of the benefits and drawbacks of traditional budgeting practices. Explain weather you support a company's use if a traditional budget or recommend a an alternative approach. Support your viewpoint by directly citing from your learning resource you chose...
Budgets can be useful tools for planning and control, but they can also present challenges for...
Budgets can be useful tools for planning and control, but they can also present challenges for many managers and spur unintended negative consequences. Some companies have begun exploring alternatives to traditional master budgeting. The chapters in the textbook provide a thorough examination of both the benefits and challenges of budgeting, while the article Budgets Don't Work: Here's How Businesses Can Do It Differently points out some problems caused by traditional budgeting practices and offers an alternative approach. For this discussion,...
A static budget is one that Is based on the actual sales volume achieved during the...
A static budget is one that Is based on the actual sales volume achieved during the period. Is developed for a single level of expected output. Is one component of the operating budget. Is always used to compare with the actual results. Materiality can be measured in terms of Absolute dollars. Relative percentages. Both absolute dollars and relative percentages. Neither absolute dollars or relative percentages. The flexible budget variance is the difference between The static budget and the flexible budget....
16.In the income statement reports, once budgets are set up – Select one: a. actual amounts...
16.In the income statement reports, once budgets are set up – Select one: a. actual amounts are always given as a percentage of the budgeted amounts b. actual amounts are always greater than the budgeted amounts c. actual amounts are always less than the budgeted amounts d. budgeted amounts may be omitted from the reports 17.Automatic fixed monthly payments such as auto lease, insurance premiums and mortgage – Select one: a. should be recorded in the adjustments journal b. can...
OBJECTIVE 1 Exercise 9-49 Planning and Control a. Dr.Jones, a dentist, wants to increase the size...
OBJECTIVE 1 Exercise 9-49 Planning and Control a. Dr.Jones, a dentist, wants to increase the size and profitability of his business by building a reputation for quality and timely service b. To achieve this, he plans on adding a dental laboratory to his building so that crowns bridges, and dentures can be made in-house. Continued) c. To add the laboratory, he needs additional money, which he decides must be obtained by increasing revenues. After some careful calculation, Dr.Jones concludes that...
Static budgets are suitable for planning if the actual level of activity during the period does not significantly diffe Select one: True False
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...
OBJECTIVE 1 Exercise 9-49 Planning and Control a. Dr.Jones, a dentist, wants to increase the size and profitability of his business by building a reputation for quality and timely service b. To achieve this, he plans on adding a dental laboratory to his building so that crowns bridges, and dentures can be made in-house. Continued) c. To add the laboratory, he needs additional money, which he decides must be obtained by increasing revenues. After some careful calculation, Dr.Jones concludes that...
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