Flexible Budget Performance Report: The comparison between the actual results and flexible budget results is called flexible budget performance report. A flexible budget is prepared based on the actual level of activity. To determine : 6. Explain why the flexible budget performance report provides more useful information to Thompson’s managers than the static budget performance report. What insights can Thompson’s managers draw from this performance report?

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Answer 1

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Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem 6CP

To determine

Flexible Budget Performance Report:

The comparison between the actual results and flexible budget results is called flexible budget performance report. A flexible budget is prepared based on the actual level of activity.

To determine:

6.

Explain why the flexible budget performance report provides more useful information to Thompson’s managers than the static budget performance report. What insights can Thompson’s managers draw from this performance report?

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Answer 2

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem 6CP

To determine

Flexible Budget Performance Report:

The comparison between the actual results and flexible budget results is called flexible budget performance report. A flexible budget is prepared based on the actual level of activity.

To determine:

6.

Explain why the flexible budget performance report provides more useful information to Thompson’s managers than the static budget performance report. What insights can Thompson’s managers draw from this performance report?

Expert Solution & Answer

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See solution

Answer 3

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem 6CP

To determine

Flexible Budget Performance Report:

The comparison between the actual results and flexible budget results is called flexible budget performance report. A flexible budget is prepared based on the actual level of activity.

To determine:

6.

Explain why the flexible budget performance report provides more useful information to Thompson’s managers than the static budget performance report. What insights can Thompson’s managers draw from this performance report?

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Definition Definition Measure used to estimate the difference between the budgeted and annual proportion for a specific accounting year. A favorable budget variance refers to positive variances or gains, while unfavorable or negative variances refer to a shortfall in the budget. A budget variance is indicative of the instances where the actual costs incurred are higher or lower than the estimated costs.

Chapter 24, Problem 6CP

To determine