Multiple Choice Questions: 1) A company is analyzing its month-end results by comparing it to both static
Question:
Multiple Choice Questions:
1) A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual fixed costs were lower than the expected fixed costs as per the static budget. This difference results in a (n):
A) Unfavorable flexible budget variance for fixed costs.
B) Favorable sales volume variance for fixed costs.
C) Favorable flexible budget variance for fixed costs.
D) Unfavorable sales volume variance for fixed costs.
2) A company is analyzing its month-end results by comparing it to both static and flexible budgets. During the previous month, the actual sales volume was lower than the expected sales volume as per the static budget. This difference results in an unfavorable:
A) Flexible budget variance for variable expenses.
B) Sales volume variance for variable expenses.
C) Flexible budget variance for sales revenues.
D) Sales volume variance for sales revenues.
3) A favorable flexible budget variance in sales revenues suggests a (n):
A) Increase in selling price.
B) Increase in volume.
C) Decrease in variable costs per unit.
D) Decrease in fixed costs.
4) An unfavorable flexible budget variance in variable expenses suggests a (n):
A) Increase in price.
B) Decrease in volume.
C) Increase in variable expenses per unit.
D) Decrease in fixed costs.
5) An unfavorable flexible budget variance in operating income might be due to a (n):
A) Increase in price.
B) Decrease in volume.
C) Increase in variable expenses per unit.
D) Decrease in fixed costs.
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver