Question 9 (1 point) The difference between actual cost and budgeted cost is referred to as the cost variance. True False Question 10 (1 point) Flexible budgets show how variable costs vary for different production levels. True False Question 11 (10 points) I would like you to practice budgeting for yourself. Here are the steps that you might want to take: 1. Figure out most helpful budget period. I'd suggest a budget for Spring Quarter, but you could instead do a budget for next week or next month, if that's more manageable. 2. Use your bank records and/or credit card statements to see your historical revenues and costs/cost categories (e.g., $125 per week on food, etc). This essentially gives you the ACTUAL column in the budget we did together. 3. Analyze your spending and see if your historical revenue and costs/spending is consistent with your priorities. Financial advisors often use the 50/30/20 rule for expenditures (50% on needs, 30% on wants and 20% on savings or debt repayment), but you need to figure out what works for you. You're a student now, so your categories and %s will look different than they will when you graduate 4. Use your historical revenue/cost information and your priorities to prepare a budget for next quarter (or next week or next month). 5. Once the budgeted period has passed, you might want to compare your budget with your actual inflows and outflows (i.e., look at your revenue and cost variances). NOTE: You DO NOT need to turn in your personal budget. This exercise is on the honor system, and you can spend as much or as little time on your budget as you want. However, the more time you spend on the budget, the more helpful it will be to you. Once you've completed your personal budget, indicate that you've done it by clicking on the YES option below. YES NO