Costing - Study Mode

[#681] If actual result is $26000, flexible budget amount is $13000, then flexible budget amount will be
Correct Answer

(C) $13,000

Explanation

Solution: Flexible budget = Actual result - Flexible budget amount = $26000 - $13000 = $13,000

[#682] If static budget amount is $9000, flexible budget amount is $20000, then sales volume variance will be
Correct Answer

(B) $11,000

Explanation

Solution: Sales volume variance = Flexible budget - Static budget = $20000 - $9000 = $11,000

[#683] If static budget is $208000 and flexible budget amount is $305000, then sales budget variance will be
Correct Answer

(B) $97,000

Explanation

Solution: Sales budget variance = Flexible budget - Static budget = $305000 - $208000 = $97,000

[#684] Subtracted flexible budget amount can form an actual result to calculate
Correct Answer

(B) flexible budget variance

Explanation

Solution: Subtracted flexible budget amount can form an actual result to calculate flexible budget variance. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results. If actual revenues are inserted into a flexible budget model, this means that any variance will arise between budgeted and actual expenses, not revenues.

[#685] If sales budget variance for operating income is $68000 and static budget amount is $19000, then flexible budget amount will be
Correct Answer

(C) $87,000

Explanation

Solution: Flexible budget amount = Operating income + static budget = $68000 + $19000 = $87,000