1.5 Standard Costing

Question 1

Flexed vs fixed budget

Answer 1

Fixed - expected resources that should have been used & their expected costs & sales vol & prices

Flexed- actual volume differs to original budget a restatement of the original budget based on the acc volume made and sold

Question 2

Standard costing, preparing budget showing flexed and original with variance analysis

Answer 2

Step 1
Create 4 column or statement
Origin budget- flexed- actuals- variance