Chapter 9: Flexible Budgets and Performance Analysis

Question 1

Activity Variance= (level of activity)

Answer 1

Difference between actual level of activity and the level of activity included in the planning budget.

Question 2

Revenue Variance

Answer 2

Difference between Actual Revenue and Flexible budget Revenue

Question 3

Activity Variance= (budget)

Answer 3

Difference between Flexible budget amount and Planning budget amount

Question 4

Spending Variance

Answer 4

Difference between actual costs and flexible budget costs