Costing - Study Mode
[#686] Sales budget variance is subtracted from flexible budget amount to calculate
Correct Answer
(A) static budget amount
Explanation
Solution: Sales budget variance is subtracted from flexible budget amount to calculate static budget amount. 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.
[#687] If flexible budget amount is $62000 and an actual result is $35000, then flexible budget amount would be
Correct Answer
(A) $27,000
Explanation
Solution: Flexible budget = Flexible budget amount - Actual result = $62000 - $35000 = $27,000
[#688] Flexible budget amount is added to flexible budget variance to calculate
Correct Answer
(B) actual result
Explanation
Solution: Flexible budget amount is added to flexible budget variance to calculate actual result. A flexible budget, also called a variable budget, is financial plan of estimated revenues and expenses based on the current actual amount of output.
[#689] Flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be
Correct Answer
(B) $71,000
Explanation
Solution: Actual result = Flexible budget amount + Flexible budget variance = $57000 + $14000 = $71,000
[#690] Static budget amount is subtracted from flexible budget amount to calculate the
Correct Answer
(A) sales budget variance
Explanation
Solution: Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance. A sales budget is management's estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements.