Q1. When using a flexible budget, what will happen to variable costs on a per-unit basis as production increases within the relevant range?

A. Decrease

B. Increase

C. Will not change

D. FIxed costs are not considered in flexible budgeting

Q2. The sales price varience is the difference between the actual sales revenues and the:

A. budgeted selling price x budgeted number of units sold

B.budgeted selling price x actual number of units sold

C. actual selling price x budgeted number of units sold

D. actual selling price x actual number of units sold

Q3. When are the following direct materials variences ideally reported?

1. Quantity(purchase date); Price(Purchase date)

2. Quantity(Time of use); Price(Time of use)

3. Quantity(Purchase date); Price(Time of use)

2. Quantity(Time of use); Price(Purchase date)

A. 1

B. 2

C. 3

D. 4