A spending variance is 5800 favorable for unit-related costs. This indicates that costs w 5800 more than the master (static) budget $800 less than for the planned level of activity 5800 more than standard for the achieved level of activity $800 less than standard for the achieved level of activity The spending variance measures a. what the costs and revenues should have been for the budgeted o. number of outputs. the difference between budgeted expenditures and actual expend the difference between expected expenditures for the actual number of outputs and the actual expenditures to for the planned number of outputs. for the actual number of outputs d. what the costs and revenues should have been for the static planning budgeted number of outputs. 10. A static budget a is valid for only one level of activity. b. should be compared to actual costs to assess how well costs were controlled. e should be compared to a flexible budget to assess how well costs were controlled. d. represents the best way to set spending targets for managers. 1. The basie difference between the statie planning (master) budget and a flexible budget is that a static budget is: a. Only used before and during the budget period and a flexible budget is only used after the budget period b For an entire production facility and a flexible budget is applicable to single departments only Based on one specific level of production and a flexible budget can be prepared for any production level within a relevant range d Based on a fixed standard and a flexible budget allows management latitude in meeting goals flexible budgets, costs that remain the same regardless of the output levels within the relevant range are: allocated costs budgeted costs variable costs ixed costs of the following statements is true? ed costs should not be included in a performance report because fixed costs are not controllable venue variance is favorable if the revenue in the static planning budget exceeds the revenue in the fle et. orable spending variance occurs when the actual cost exceeds the amount of that cost in the flexibl flexible budget is used in performance evaluation, actual costs are compared to what the costs sh r the actual level of activity during the period rather than to the static planning budget. following statements is not correct? budget is the starting point in preparing the master budget. budget is constructed by multiplying the expected sales in units by the sales price. udget generally is accompanied by a computation of expected cash receipts for the forth dget must be prepared prior to the sales budget because managers want to know the e