managerial accounting

- . - F E10-1 Mike Trusler has prepared the following list of statements about budgetary control. 1. Budget reports compare actual results with planned objectives. 2. All budget reports are prepared on a weekly basis. 3. Management uses budget reports to analyze differences between actual and planned results and determine their causes. 4. As a result of analyzing budget reports, management may either take corrective action o r modify future plans. 5. Budgetary control works best when a company has an informal reporting system 6. The primary recipients of the sales report are the sales manager and the vice president of production. 7. The primary recipient of the scrap report is the production manager. 8. A static budget is a projection of budget data at one level of activity. 9. Top management's reaction to unfavorable differences is not influenced by the ma- teriality of the difference. 10. A static budget is not appropriate in evaluating a manager's effectiveness in control- ling costs unless the actual activity level approximates the static budget activity level or the behavior of the costs is fixed. P b E10-2 Crede Company budgeted selling expenses of $30,000 in January, $35,000 in February, and $40,000 in March. Actual selling expenses were $31,200 in January, $34,525 in February, and $46,000 in March. Instructions (a) Prepare a selling expense report that compares budgeted and actual amounts by month and for the year to date. (b) What is the purpose of the report prepared in (a), and who would be the primary recipient? (c) What would be the likely result of management's analysis of the report