Understand key terms (Learning Objectives 1, 2)

Fill in the blank with the phrase that best completes the sentence.

a. The static budget is developed atthe-

b. The flexible budget used in an income statement performance report is based onthe-

c. The master budget is based onthe-

d. The flexible budget used in an income statement performance report is developed atthe-

e. The difference between actual costs and the costs that should have been incurred for the actual number of outputs isthe-

Actual number of outputs Expected number of outputs Sales volume variance Beginning of the period End of the period Flexible budget variance Static budget variance