Homework Answers
Answer
True
Static budgets are suitable for situation when actual activity doesn't significantly changes. Since if activity changes significantly then in that case flexible budgets are suitable.
For example let's take a example revenue change from 100 to 101 this won't make any difference but if revenue change from 100 to 150 then it's significant amount and then we have to use flexible budget.
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Static budgets are suitable for planning if the actual level of activity during the period does...
Static budgets are suitable for planning, however they can be inadequate for control if the actual...
Static budgets are suitable for planning, however they can be inadequate for control if the actual level of activity during the period diffe Select one True O False ning, however they can be inadequate for control if the actual level of activity during the period differs significantly from the budgeted level.
What budget comparison best isolates the impact in activity changes ( static/planning, flexible, and actual results
What budget comparison best isolates the impact in activity changes ( static/planning, flexible, and actual results
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...
A static budget is one that is geared to the most profitable level of activity for...
A static budget is one that is geared to the most profitable level of activity for a company. O is a projection of budget data at various levels of activity. O considers that actual activity is often different from the level of activity expected. is a projection of budget data at one level of activity.
A budget that is based on the actual activity of a period is known as a:
19) A budget that is based on the actual activity of a period is known as a: A) continuous budget. B) flexible budget. C) static budget. D) master budget. 20) Sathre Corporation is an oil well service company that measures its output by the number of wells serviced. The company has provided the following fixed and variable cost estimates that it uses for budgeting purposes.When the company prepared its planning budget at the beginning of December, it assumed that 34 wells would have been serviced....
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...
A budget that is based on the actual activity of a period is known as a...
A budget that is based on the actual activity of a period is known as a continuous budget flexible budget static budget master budget
14. Which of the following includes a normal sequence in which the indicated budgets are prepared?...
14. Which of the following includes a normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales C. Sales, Balance Sheet, Direct Materials E. Production, Direct Materials, Direct Labor B. Production, Direct Materials, Sales D. Production, Mfg. OH, Sales 15. Which of the following is a benefit of budgeting? A. reduces the need for tracking actual cost activity B. sets benchmarks C. does not uncover potential bottlenecks D. discourages planning E. all of these 16. The...
61) Assume that a company’s planned level of activity was 3,500 units and its actual level...
61) Assume that a company’s planned level of activity was 3,500 units and its actual level of activity was 4,000 units. The spending variance for one of its mixed expenses was $350 favorable and its activity variance was $200 unfavorable. The total amount of this mixed cost included in the planning budget was $12,000. What is the actual total amount of this mixed expense? Multiple Choice $12,250 $11,850 $11,450 $13,650 62)Assume that a company provided the following cost formulas for...
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....
Static budgets are suitable for planning, however they can be inadequate for control if the actual level of activity during the period diffe Select one True O False ning, however they can be inadequate for control if the actual level of activity during the period differs significantly from the budgeted level.
A static budget is one that is geared to the most profitable level of activity for a company. O is a projection of budget data at various levels of activity. O considers that actual activity is often different from the level of activity expected. is a projection of budget data at one level of activity.
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...
14. Which of the following includes a normal sequence in which the indicated budgets are prepared? A. Direct Materials, Cash, Sales C. Sales, Balance Sheet, Direct Materials E. Production, Direct Materials, Direct Labor B. Production, Direct Materials, Sales D. Production, Mfg. OH, Sales 15. Which of the following is a benefit of budgeting? A. reduces the need for tracking actual cost activity B. sets benchmarks C. does not uncover potential bottlenecks D. discourages planning E. all of these 16. The...
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