cost is called 6. The difference between the actual cost incurred and the standard A. Flexible variance. B. Cost variance. C. Price variance. D. Controllable variance. E. Volume variance. 7. A flexible budget performance report compares the differences between: A. Actual performance over several periods. B. Budgeted performance over several periods. C. Actual performance and budgeted performance based on budgeted salos volume D. Actual performance and budgeted performance based on actual sales volume. E. Actual performance and standard costs at the budgeted sales volume. 8. Gordon Corporation inadvertently produced 10,000 defective digital watches. The watches cost $8 each to produce. A salvage company will purchase the defective units as they are for $3 each. Gordon's production manager reports that the defects can be corrected for $5 per unit, enabling them to be sold at their regular market price of $12.50. Gordon should: A. Correct the defects and sell the watches at the regular price. B. Sell the watches for $3 per unit C. Sell the watches as they are because repairing them will cause their total cost to exceed their selling price. D. Sell 5,000 watches to the salvage company and repair the remainder. E. Throw the watches away. 9. An additional cost incurred only if a company pursues a particular course of action is a): A. Period cost. B. Incremental cost Discount cost. C. D. Out of Pocket cost E. Sunk Cost pg. 2