ACC 341 WORKSHOP 5.3 REVIEW QUESTIONS
Download 2. What is a flexible budget and how does it differ from a static planning budget? 3. What are some of the possible reasons that actual results may differ from what had been budgeted at the beginning of a period? 4. Why is it difficult to interpret a difference between how much expense was budgeted and how much was actually spent? 6. What is a revenue variance and what does it mean? 8. What does a flexible budget performance report do that a simple comparison of budgeted to actual results does not do? 1. What is a quantity standard? What is a price standard? 3. What is meant by the term management by exception? 4. Why are separate price and quantity variances computed? 6. The materials price variance can be computed at what two different points in time? Which point is better? Why? 10 What effect, if any, would you expect poor-quality materials to have on direct labor variances?