Costing - Study Mode
[#456] Difference between flexible budget amount and corresponding actual result is called
Correct Answer
(C) flexible budget variance
Explanation
Solution: Difference between flexible budget amount and corresponding actual result is called flexible budget variance. A flexible budget is a budget that adjusts or flexes with changes in volume or activity. The flexible budget is more sophisticated and useful than a static budget.
[#457] An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate
Correct Answer
(D) selling price variance
Explanation
Solution: An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate selling price variance. Sales price variance measures the change in a company's total budgeted revenue to the actual revenue earned on a product.
[#458] Number of units are multiplied to per unit price, to calculate
Correct Answer
(C) flexible budget variable
Explanation
Solution: Number of units are multiplied to per unit price, to calculate flexible budget variable. A flexible budget variance is any difference between the results generated by a flexible budget model and actual results.
[#459] Budget which calculates expected revenues and expected costs, based on actual output quantity is named as
Correct Answer
(A) flexible budget
Explanation
Solution: Budget which calculates expected revenues and expected costs, based on actual output quantity is named as flexible budget. A flexible budget, also called a variable budget, is financial plan of estimated revenues and expenses based on the current actual amount of output.
[#460] If flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be
Correct Answer
(C) $39,000
Explanation
Solution: Actual result = Flexible budget amount + Flexible budget variance = $27000 + $12000 = $39,000