test 3

Question 1

Sales activity variance

Answer 1

Difference between the actual selling price and the budgeted selling price multiplied by the actual number of units sold

Question 2

Master Budget

Answer 2

The financial plan of an organization for the coming year or other planning period

Question 3

Strategic Long Range Budget

Answer 3

Statements detailing steps to take to achieve a company’s goals (3-5 years)

Question 4

Flexible Budget

Answer 4

Budget that indicates revenues, costs, and profits for different levels of activity

Question 5

Standard Costing

Answer 5

An accounting method that assigns costs to cost objects at predetermined amounts

Question 6

Operating Budget

Answer 6

Sales budget, production budget, COGS budget, Marketing and admin budget, income statement budget

Question 7

Production variance

Answer 7

input variances, price and efficiency variances

Question 8

Favorable variance

Answer 8

When taken alone, increases operating profit

Question 9

Price variance

Answer 9

Difference between actual costs and budgeted costs multiplied by actual quantity AQ*(AP-SP)

Question 10

Efficiency Variance

Answer 10

Difference between actual quantity and budgeted quantity multiplied by standard price SP*(AQ-SQ)

Question 11

Organizational Goals

Answer 11

Company’s broad objectives established by management that employees work to achieve

Question 12

Budget

Answer 12

A financial plan of the resources needed to carry out activities and meet financial goals.