Ch: Flexible Budgets, Standard Costs, and Variance Analysis

1. If you were on the board of directors of the theatre, would you be pleased with how well costs were controlled during the year?

Why or why not?

(Will not accept questions based on opinions, must use the concepts and examples included in the chapter to answer).

2. The cost formulas provide figures for the average cost per production and average cost per performance.

How accurate do you think these figures would be for predicting the cost of a new production ???

or of an additional performance of a particular production???

HINT: Think about what standard costs are and how they are used.