Cost Accounting, Student Value Edition (15th Edition)
Cost Accounting, Student Value Edition (15th Edition)
15th Edition
ISBN: 9780133428858
Author: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
Publisher: PEARSON
Question
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Chapter 7, Problem 7.20E

1.

To determine

Variance:

Variance is the variation in the actual and budgeted output. The budgeted output is taken as standard to compare it with the actual to find the deviations in the performance.

Static Budget:

Static budget is a fixed budget prepared for a particular period of time without considering the fluctuations that may arise in the course of its action.

To calculate: Static budget variances and their percentages relating to static budget amount.

2.

To determine

Flexible Budget

Flexible budget is a financial plan prepared for a particular period of time on different levels of output experienced in the production unit.

To calculate: Flexible budget variances and sales volume variance.

3.

To determine

To calculate: Selling price variance.

4.

To determine

Role of management accountant.

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