Chapter 8. Flexible Budgets, Standard Costs, and Variance Analysis

81 What is a static planning budget?

82 What is a flexible budget and how does it differ from a static planning budget?

85 What is a revenue variance and what does it mean?

86 What is a spending variance and what does it mean?

87 What does a flexible budget enable that a simple comparison of the planning budget to actual results does not do?

89 What is a quantity standard? What is a price standard?

810 Why are separate price and quantity variances computed?

811 Who is generally responsible for the materials price variance? The materials quantity variance? The labor efficiency variance?

812 The materials price variance can be computed at what two different points in time? Which point is better? Why?