week 7 p1

Current Attempt in Progress On the basis of the budget reports, management analyzes differences between actual and planned results. management may take corrective action. management may modify the future plans. All of these answers are correct. The purpose of the departmental overhead cost report is to control selling expense. control indirect labor costs. control overhead costs. determine the efficient use of materials. The purpose of the sales budget report is to determine whether income objectives are being met. control selling expenses. control sales commissions. determine whether sales goals are being met. The comparison of differences between actual and planned results is usually done orally in departmental meetings. is done by the external auditors. appears on the company's external financial statements. appears on periodic budget reports. Current Attempt in Progress Astatic budget should not be prepared in a company. shows planned results at the original budgeted activity level. is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs. is changed only if the actual level of activity is different than originally budgeted. Which one of the following would be the same total amount on a flexible budget and a static budget if the activity levelis different for the two types of budgets? Direct materials cost Direct labor cost Fixed manufacturing overhead Variable manulacturing overhead Current Attempt in Progress In developing a flexible budget within a relevant range of activity, only fixed costs are included. variable and fixed costs are combined and are reported as a total cost. it is necessary to relate variable cost data to the activity index chosen. it is necessary to prepare a budget at 1,000 unit increments. Current Attempt in Progress What budgeted amounts appear on the flexible budget? Original budgeted amounts at the static budget activity level. Actual costs for the budgeted activity level. Actual costs for the estimated activity level. Budgeted amounts for the actual activity level achieved. Current Attempt in Progress The flexible budget isa series of static budgets at different levels of activity: is prepared before the master budget. eliminates the need for a master budget. is relevant both within and outside the relevant range. Current Attempt in Progress Aflexible budget can be prepared for which of the following budgets comprising the master budget? Sales. Overhead Direct materials. All of these answers are correct. Current Attempt in Progress The accumulation of accounting data on the basis of the individuai manager who has the authority to make day-to-dsy decistons about activities in an area is calied static reporting fexible accounting. master budgeting. responsibility accounting Current Attempt in Progress A cost is considered controllable at a given level of managerial responsibility if the cost has not exceeded the budget amount in the master budget. the manager has the power to incur the cost within a given time period. it is a variable cost, but it is uncontrollable if it is a fixed cost. it changes in magnitude in a flexible budget