The flexible budget formual is based on _____________ __________________ estimates.

a.Financial Statement

b.Master Budget

c.Flexible Budget

d. Pro Forma

Sales-Variable Cost=

a.Fixed Costs

b.Net Income

c.Operating Revenue

d.Contribution Margin

Contribution Margin indidcates what is left to be "contributed to"

a.Net Income

b.Fixed Costs

c.Variable Costs

d.Sales

Management by Exception directs management's attention to

a.only those variances that exceed 10%

b. all budget variances

c. only those variances that exceed the benchmark management has set

d. no variances

Flexible budgets eleminate which variance?

a.Sales Volume

b.Contribution Margin

c.Direct Labor

d.Fixed Cost

The ultimate responsibilty for the budgetary process lies with

a.Accounting

b.Senior Management

c.Operations

d. Auditors