An advantage of the flexible budget over the static budget is: Group of answer choices Flexible budget can be prepared based on the sales volume of the previous period. Flexible budget provides better comparison as it can be prepared based on the actual level of sales volume. Preparation of flexible budget is relatively less time consuming. Flexible budget requires less data.

An advantage of the flexible budget over the static budget is: Group of answer choices Flexible budget can be prepared based on the sales volume of the previous period. Flexible budget provides better comparison as it can be prepared based on the actual level of sales volume. Preparation of flexible budget is relatively less time consuming. Flexible budget requires less data.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following statements is not correct? The revenue budget is the starting point in preparing the master budget. The revenue budget is constructed by multiplying the expected sales in units by the sales price. The production budget is not based on the revenue budget. The cash budget is used to determine whether the firm will have enough cash on hand.
One of the advantages of a production budget is that it can help to uncover potential production issues before they occur. Question 18 options: True False
Which of the following statements is true? Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.
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Total variance in variance analysis compares ● Flexible budget and actual outcome Static budget and flexible budget Flexible budget and static outcome Static budget and actual outcome
benefits of flexible budgeting on sustainability.
In the executing stage of management cycle, managers check for variances, between budgets and actual performance. Select one: O True O False
The margin of safety can be defined as the excess of budgeted sales over: break-even sales. net income. fixed costs. variable costs.Question
since flexible budget is more accurate in measuring performance, can company just develop flexible budget without the static budget? Why or why not?
How do managers use budgets to control business activities?a) Match the concept (by number) to the correct terminology. 1. Static Budget2. Budget Performance Report3. Variance4. Static Budget Variance5. Flexible Budget6. Flexible Budget Variance7. Sales Volume Variance______ A budget prepared for various levels of sales volume.______ The difference between actual results and the expected results in the flexible budget for the actual units sold. ______ The difference between the expected results in the flexible budget for the actual units soldand the static budget. _____ The difference between actual results and the expected results in the static budget. _____ A report that summarizes the actual results, budgeted amounts, and the differences. _____ A budget prepared for only one level of sales volume. _____ The difference between an actual amount and the budgeted amount; labeled as favorable if it increases operating income and unfavorable if it decreases operating income. In…
Oakwood Financial Inc. was organized on February 28. Projected selling and administrative expenses for each of the first three months of operations are as follows: March $107,200 April 99,700 May 90,700 Depreciation, insurance, and property taxes represent $23,000 of the estimated monthly expenses. The annual insurance premium was paid on February 28, and property taxes for the year will be paid in June. 67% of the remainder of the expenses are expected to be paid in the month in which they are incurred, with the balance to be paid in the following month. Prepare a schedule indicating cash payments for selling and administrative expenses for March, April, and May. Oakwood Financial Inc. Schedule of Cash Payments for Selling and Administrative Expenses For the Three Months Ending May 31 March April May March expenses: Paid in March Paid in April April expenses: Paid in April Paid in May May expenses: Paid in May Total cash payments