$1)$

The question is whether or not the actual results met$$ expectations, exceeded$$ expectations, or failed to meet expectations and$$ a$($n$)\_\_\_\_\_\_\_$ will respond to this question.$$ A$($n$)\_\_\_\_\_\_\_$ is the result of subtracting the budgeted or predicted outcome from the actual outcome.

$2)$

$$A$($n$)\_\_\_\_\_\_\_$ means the effect of the variance is to increase operating income.$$ A$($n$)\_\_\_\_\_\_\_$ means the effect of the variance is to decrease operating income.

$3)$

$$A$($n$)\_\_\_\_\_\_\_$ simply fails to reflect the routine effect of changes in quantity produced and sold on the revenue and the variable costs.

$4)$

$$A$($n$)\_\_\_\_\_\_\_$ does reflect the routine changes to be expected when the quantity produced and sold fluctuates from what was predicted. The$\_\_\_\_\_\_\_$ permits more$\_\_\_\_\_\_\_$ in the report of$$ non$-$routine variances and$\_\_\_\_\_\_\_.$ The$\_\_\_\_\_\_\_$ plus the$\_\_\_\_\_\_\_$ equals the$\_\_\_\_\_\_\_.$

$5)$

When quantities of direct materials purchased and used differ from$$ budget, the variance can be the result of either$$ a$($n$)\_\_\_\_\_\_\_(\_\_\_\_\_\_\_)$ arising in an unexpected difference in the$$ cost$/$unit$,$ a$($n$)\_\_\_\_\_\_\_$ arising from an unexpected difference in the quantity of the input$$ used, or a combination of both.

$6)$

When a direct materials$\_\_\_\_\_\_\_$ has$\_\_\_\_\_\_\_,$ both the$\_\_\_\_\_\_\_$ and the$\_\_\_\_\_\_\_$ become important.

$7)$

These elements of a Level $4$ analysis permit the managers to assess how changes from what was expected affected the$\_\_\_\_\_\_\_.$Question content area top

Part $1$

A number of terms are provided.direct materials mix variance

fineness

management by exception

favourable$($F$)$ variance

input mix

input rate variance

$$flexible$-$budget variance

$$sales$-$volume variance

efficiency variance

rate variance

unfavourable$($U$)$ variance

flexible budget

substitutable inputs

yield variance

mix variance

yield

variance analysis

static budget

direct materials yield variance

static budget variance

variance