A static budget is a comprehensive financial plan produced at the beginning of the year for the entire enterprise and does not change or flex during the year. A budgeted amounts for actual outputB budgeted amounts for planned output C actual costs for actual output D actual costs for planned output Answer.
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Fixed costs are kept at the same level of static budget D variable costs are kept at the same level of static budget.
. A flexible budget includes only variable costs whereas a static budget includes only fixed costs. Which of the following is. Selling output at a higher selling price than budgeted.
Direct materials of 2 per unit direct labor of 3 per unit and manufacturing overhead of 1 per unit. Fixed costs are 35000. Discrepancies resulting from the fluctuating cost of raw materials or initial budgeting errors appear on a static budget as static budget variance.
When accounting for the end of a production cycles actual expenses the static. Thus it uses budgeted costs based. The following items are the same for the flexible budget and the master budget.
Actual costs for actual output. Using more input quantities than were budgeted. The static budget variance for operating income is 3 million unfavorable.
A static budget is a budget that does not change with variations in activity levels. D is a practice whereby managers focus more closely on areas that are not. They are not based on or adjusted for actual performance.
Consider the following statements. 100 A company has a static budget at 10000 units of production which shows direct material cost of 80000 direct labor cost of 60000 and factory overhead costs of 37000. Text 28040 text 25540 text 2500 endmatrix The.
In contrast to a static budget a companys sales department might have a flexible budget. To help assess how well a manager has controlled costs actual costs should be compared to what the costs should have been for the actual level. A budgeted amounts for actual output B budgeted amounts for planned output C actual costs for actual output D actual costs for planned output Answer.
Choice B is correct. A flexible-budget variance is the difference between an actual result and the corresponding flexible-budget amount based on the actual output in the budget period. D actual costs for planned output.
The flexible budget contains _____. An unfavorable flexible-budget variance for variable costs may be the result of. A flexible budget primarily is prepared for planning purposes while a static budget is prepared for performance evaluation.
Choice a is incorrect. Actual costs for actual output represent actual activity not budget. A static budget is generally used as a projection tool for estimating business expenses within a given period of time.
Static budgets thus include budgeted costs for budgeted output. Paying higher prices for inputs than were budgeted. A the relative amount of inputs used to achieve a given output level B the continuous process of comparing a firms performance levels against the best levels of performance in competing companies.
B actual variable cost C actual selling price per unit D actual fixed cost. A budgeted amounts for actual output B budgeted amounts for planned output. They provide expected costs for a variety of activity levels.
Choice c is incorrect. Sales Production Direct Materials Direct Labor Manufacturing Overhead Selling and Administrative Expense Budget Budgeted Income Statement All Budgets Budgets that indicate the cash resources needed for expected operations and planned capital expenditures. Factory overhead costs are 40 fixed.
C the degree to which a predetermined objective or target is met. This budget is the plan for the purchase and disposal of plant assets and lists the estimated dollar amounts for each. This budget format is the simplest and most commonly used budgeting format.
They are very useful in preparing performance reports. Assume that a companys annual budget is a. Which of the following is true of static budgets.
A static budget is based on costs at one level of output. 65 The flexible budget contains. Example of a Static Budget.
Uses this information when preparing their flexible budget. Budgeted costs for budgeted output. A flexible budget performance report contains activity variances but not revenue or spending variances.
Thus even if actual sales volume changes significantly from the expectations documented in the static budget the amounts listed in the budget are not changed. Choice b is incorrect. Flexible budget costs with fixed static budget costs.
A static budgetwhich is a forecast ofrevenueandexpensesover a specific periodremains unchanged even with increases or decreases in sales and production volumes. 1 The flexible budget contains. The flexible budget contains.
They are not based on or adjusted for actual performanceChoice c is incorrect. Actual cost for budgeted output would not be computed as part of static budget. A static budget contains which of the following amounts.
Regier Company had planned for operating income of 10 million in the master budget but actually achieved operating income of only 7 million. 66 The following items are the same for the flexible budget and the master budget. A budgeted amounts for actual output B budgeted amounts for planned output C actual costs for actual output.
In the flexible budget the sales commissions expense budget would be stated as a percentage of sales. Actual costs for actual output represent actual activity not budget. Click card to see definition.
A spending variance is the difference between the amount of the cost in the static planning budget and the amount of the cost in the flexible budget. They provide budgeted costs for a variety of activity levels. This approach varies from the more common static budget which contains nothing but fixed amounts that do not vary with actual revenue levels.
Budget versus actual reports under a flexible budget tend to yield variances that are much more relevant than those generated under a static budget since both the budgeted and actual expenses are based. A flexible budget provides cost allowances for different levels of activity whereas a static budget provides costs for one level of activity. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.
The main difference between a flexible budget and a static budget is that the static budget is not adjusted for changes in the level of activity. Figure Cold X Inc. Static budgets thus include budgeted costs for budgeted output.
An estimate of expected sales for the budget period. Tap card to see definition. A budgeted amounts for actual output.
A static budget is a budget in which the amounts will not change even with significant changes in volume. Budgeted amounts for actual output. The flexible budget contains.
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