Multiple Choice Questions: 1) The Carolina Products Company has completed the flexible budget analysis for the 2nod
Question:
Multiple Choice Questions:
1) The Carolina Products Company has completed the flexible budget analysis for the 2nod quarter, which is as given below.
Which of the following statements would be a correct interpretation of the flexible budget variance for sales revenue?
A) Decrease in price per unit
B) Increase in variable cost per unit
C) Increase in sales volume
D) Increase in fixed costs
2) The Carolina Products Company has completed the flexible budget analysis for the 2nod quarter, which is as given below.
Which of the following statements would be a correct interpretation of the flexible budget variance for variable expenses?
A) Decrease in price per unit
B) Increase in variable cost per unit
C) Increase in sales volume
D) Increase in fixed costs
3) The Carolina Products Company has completed the flexible budget analysis for the 2nod quarter, which is as given below.
Which of the following statements would be a correct interpretation of the flexible budget variance for fixed expenses?
A) Decrease in price per unit
B) Increase in variable cost per unit
C) Increase in sales volume
D) Increase in fixed costs
4) A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual selling price was higher than the expected price as per the static budget. This difference results in a (n):
A) Favorable flexible budget variance for sales revenues.
B) Favorable sales volume variance for sales revenues.
C) Unfavorable flexible budget variance for sales revenues.
D) Unfavorable sales volume variance for sales revenues.
5) A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual variable expenses per unit were lower than the expected variable costs per unit as per the static budget. This difference results in a (n):
A) Favorable flexible budget variance for variable expenses.
B) Favorable sales volume variance for variable expenses.
C) Unfavorable flexible budget variance for variable expenses.
D) Unfavorable sales volume variance for variable expenses.
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver