A number of terms are listed below:

REQUIRED
Select the terms from the above list to complete the following sentences.
The question is whether or not the actual results met expectations, exceeded expectations or failed to meet expectations and a ________ ________ will respond to this question. A ________ is the result of subtracting the budgeted or predicted outcome from the actual outcome. A __________ (_) ________ means the effect of the variance is to increase operating income. An ____________ (_)________means the effect of the variance is to decrease operating income. A ______ ______ ________ simply fails to reflect the routine effect of changes in quantity produced and sold on the revenue and the variable costs. A ________ ______ does reflect the routine changes to be expected when the quantity produced and sold fluctuates from what was predicted. The ________ ______permits more ________ in the report of non-routine variances and __________ __ _________. The ________ ______ ________ plus the _____ ______ ________ equals the ______ ______ ________. When quantities of direct materials purchased and used differs from budget the variance can be the result of either a ____ ________ (_____ _____ ________) arising in an unexpected difference in the cost/unit or an efficiency variance arising from an unexpected difference in the quantity of the input used, or a combination of both. When a direct materials ________ has _____________ ______ both the ______ _________ ____ ________ and the ____________________________ become important. These elements of a level 4 analysis permit the managers to assess how changes from what was expected affected the _____.

Transcribed Image Text:

direct materials mix variance favourable (F variance flexible-budget variance rate variance substitutable inputs yield fineness nput mix sales-volume variance unfavourable (U) variance yield variance variance analysis static budget variance management by exception input price variance éfficiency variance flexible budget mix variance static budget rect materials yield variance Variance