Question
1. Which of the following is true about a flexible budget? A)It is based on one level of activity. B) It treats fixed costs as
1. Which of the following is true about a flexible budget?
A)It is based on one level of activity.
B) It treats fixed costs as if they are variable costs.
C) It is based on an unlimited range of activity.
D) It provides a means of comparison between actual and expected costs at the actual level of activity.
E) All of the above
2. Which of the following is the formula flexible budget?
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(Budgeted variable-overhead cost per activity unit x Total activity units) + Budgeted fixed overhead cost for the month
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(Budgeted variable-overhead cost per planned-activity unit x Total activity units) + Budgeted fixed overhead cost for the month
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(Actual variable-overhead cost per activity unit x Total activity units) + Budgeted fixed overhead cost for the month
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Budgeted variable and fixed cost per unit x Total planned process hours
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Budgeted variable and fixed cost per unit/Total planned process hours
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
