Week 8

Question 1

Variance diagram

Answer 1

(0)Static budget variance > (I)Sales-volume variance&raquo_space;1. (II)Sales-mix variance / 2. (II)Sales-quantity variance&raquo_space; a. (III)Market-share variance / b. (III)Market-size variance)

Question 2

(0)Static budget variance meaning

Answer 2

Difference in budgeted and actual profit

Question 3

(I)Sales-volume variance meaning

Answer 3

Difference in ????????

Question 4

Actual VS Standard Cost Budget VS Flexible budget VS static budget

Answer 4

Cost - C
# of hours (input) - I
# of jobs (volume) - V
—
Actual cost - Act
Budgeted cost -Budg

Actuals - Act(CIV)
St. Cost Budget - BudgC + Act(IV)
Flex. Budget - Budg(CI) + ActV
Static budget - Budg(CIV)

Question 5

Flexible budget variance

Answer 5

Flexible budget - Actuals

Question 6

Price/Spending variance

Answer 6

St. Cost Budget - Actuals

Question 7

Efficiency variance

Answer 7

Flexible budget - St. Cost Budget