Question

I need help with Questions 20 , 21 and 22 Please. Thank You,

Question 20 What assumption about the behaviour of total costs occurs within the relevant range of activity? linear and upward sloping linear and downward sloping curvilinear and upward sloping horizontal Question 21 Nextel Communications uses management by exception. Which differences between planned and actual results will it investigate? those that are material and non-controllable those that are controllable and non-controllable those that are material and controllable all differences should be investigated

Answer 1

1) ANSWER - option A

General assumption about the behaviour of total cost occurs within the relevant range of activity is LINEAR AND UPWARD SLOPING

2)ANSWER option A

generally in any company using management by exception, the main differences between planned and actual they will investigate is  

those that are material and non controllable. because generally we no need to worry about the conntrollable activities and non monetray items or activities. therefore we need to focus on material and uncontrollable activities

3) Answer option B

To be most useful, the amounts that the compnay should compare for the performance report is with the actual results with a new budget with that actual results.

therefore the above marigold toasters should compare actual results for 45400 units with a new budget for 45400 units.