QUESTION 3 True or False: Comparing a static planning budget to actual costs is

Question

QUESTION 3 True or False: Comparing a static planning budget to actual costs is a not good way to assess whether variable costs are under control. O True False QUESTION 4 True or False: Differences between the static planning budget and the flexible budget show what should have happened because the actual level activity differed from what had been planned O True O False QUESTION 5 True or False: A favorable spending variance occurs when the actual cost is less than the amount of the cost in the static planning budget. O False True QUESTION 6 An unfavorahle materials nuantitv variance indicates that Click Save and Submit to save and submit. Click Save All Answers to save all answers.

Explanation / Answer

3) True, a static planning budget doesn't look out for volume changes, for comparing variable costs a flexible budget is used.

4) True, A static planning budget is fixed volume budget whereas a flexible budget is made for different volume of activities.

5) False, A favorable variance occurs when cost are less than the cost calculated in flexible budget.

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.