How are joint costs allocated? Explain and analyze using numerical example.

Q: better system for performance analysis?

A: A flexible budgeting system is a type of budgeting which is based on various sales volumes and it…

Q: What is the main advantage of an object classification budget? What are its limitations? How do…

A: Answer: Object classification budget is the budget which is traditional system of budget and it is…

Q: How do you make a decision in case of special order? Explain. Use examples if required.

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What does the fixed overhead budget variance measure?

A: Given Information: Variance occurs when there is a difference between expectation and the actual…

Q: What are the two components of the static budget variance? How are they calculated?

A: Definition:   Static budget variance: The static budget variance is the difference between the…

Q: Give the general formulas for determining cost and efficiency variances.

A: Cost variance: Cost variance shows the difference of standard cost and actual costs. Efficiency…

Q: 1. How is the flexible budget used within the variance analysis system to evaluate effectiveness and…

A: 1) Flexible budget refers to a budget that flexes with change in volume or change in activity. It is…

Q: How can the total flexible-budget variance be broken down (i.e., what are the constituent parts of…

A: Flexible-budget variance is the variation between the budgeted results shown under flexible budget…

Q: Explain what is meant by the term management by exception. What is the relationship between the…

A: Management by exception: Under this style of management, employees are allowed to take decisions…

Q: Describe how flexible-budget variance analysis can be used in the control of costs of activity…

A: Flexibe-budget variance:

Q: Explain the term flexible budget variance.

A: Flexible Budget: It is a type of budget that changes based on the volume of business activity.…

Q: how to compute quantity/efficiency variance

A: Cost accounting is beneficial since it can demonstrate where a corporation spends money, earns…

Q: The process of creating a formal plan and translating goals into quantitative form is Process…

A: The process of creating a formal plan and translating goals into quantitative forms is known as…

Q: Which of the following is true?   a. The Flexible Budget Variance for operating income is…

A: The answers for the multiple choice questions and relevant explanation are presented hereunder : The…

Q: When an organization allocated indirect costs to departments by relative size of the budgets, it is…

A: The question is True or False.

Q: Accounting How is price variance for room sales calculated? Which two components can the flexible…

A: Standard costing is the process of replacing an actual cost in the accounting records with a…

Q: Explain how standard costs and flexible budgets can be used for short-term profit analysis—that…

A:

Q: Describe how nonoutput-based cost drivers can be incorporated into budgeting.

A: Budget: The budgeting is a process of preparing budgets and the evaluation of it to see whether the…

Q: How does the static budget affect the cost and efficiency variances?

A: Definition:   Static budget: Static budget is a master budget that is prepared for only one level of…

Q: The performance evaluation of a cost center is typically based on its sales volume variance. ROI.…

A: A performance evaluation system is a tool in the hands of the management which is used for periodic…

Q: what is the difference between fixed overhead budget variance and fixed overhead volume variance

A: The variance is the difference between the actual data and standard output of the production.

Q: What are the relations among standard costs, flexible budgets, variance analysis, and management by…

A: Budgetary control focus on profits maximization of the enterprise and to accomplish this purpose,…

Q: How might a manager gain insight into the causes of a flexible-budget variance for direct materials?

A: Variance is the difference in the value of budgeted cost\quantity and the actual cost\quantity.…

Q: What assumption is implicitly made about cost behavior when a budget is directly compared toactual…

A:

Q: which formula is correct for budget variance. Please see below:   * Static Budget Variance…

A: Static Budget Variance is the difference between the actual results and the static budget = (Actual…

Q: Prepare a flexible budget management report indicating the activity variance and revenue and…

A: A flexible budget adjusts to changes in actual revenue levels. Actual revenues or other activity…

Q: What type of procedure is a Budget vs. Actual comparison?

A: Budget is a statement of cost and revenue which are estimated at the start of the period  Actual is…

Q: Distinguish among a​ budget, a performance​ report, and a variance.       Question content area…

A: Introduction:- Budgeting plays vital role in every organization or business or company or person. it…

Q: How are standards and variances used in budgeting and budget analysis?

A: Variance refers to the difference between the standard values to the actual values for both revenue…

Q: What are the relations among standard costs, flexible budgets, variance analysis and managment by…

A: Because actual costs cannot be predicted in advance, standard costs are estimations of actual costs…

Q: What does a flexible budget performance report do that a simple comparison of budgeted to actual…

A: Flexible budget performance report:   A tool used to compare the actual and budgeted results…

Q: variance in its report, except

A: A company using direct costing in its performance evaluation would normally include the following…

Q: IDENTIFY AND DISCUSS THE DIFFERENCES BETWEEN STATIC AND FLEXIBLE BUDGETS.

A: A budget is defined as a plan layout designed for a particular period. It involves planning costs…

Q: Which of the following describes the Comparison method of budgeting?      Does not include…

A: Budgets are prepared by a company to estimate the amount of net revenues or total cost to be…

Q: Which of the following is the basic purpose of a responsibility accounting?a. variance analysisb.…

A: Definition: Responsibility accounting: The management of responsibility centers by the means of…

Q: Two standards that are established for evaluating budget performance are the cost standard and the…

A: Ans. Cost standard measures deviation between the actual cost and standard cost.  Whereas,…

Q: Compare how alternative budget time frames can be used.

A: A budget is a quantitative plan for acquisition and use of resources in a business over a specified…

Q: Which of the following may appear on a flexible budget performance report? Multiple Choice An…

A: A flexible budget is a budget that includes all the flexibility and change in the output. In…

Q: To reconcile budgeted profit to actual profit under marginal costing, which variances must be…

A: Marginal Costing is a method of costing, where the marginal cost, the variable cost is charged to…

Q: Which of the following statements is false?   Standard costs (e.g., how much should be paid for…

A: Statement 1 is true, because standard costs are considered as benchmarks for measuring performance.

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.