ACCT 201B CH.9 Test Questions and Answers Updated.

ACCT 201B CH.9 Test Questions and
Answers 2026-2027 Updated.
flexible budget - Answer takes into account changes in cost due to changes in an activity. tells
what costs or revenue it should have been for a given lvl of activity



good for

-measure performance

-identify discrepancies between budget & actual costs



unlike a planning budget where has set lvl of activity at start of period (static planning). is good
for

-planning but not evaluating performance (unless similar to both)



how flexible budget works - Answer compare what actually happened vs. the static planning
budget.

HOWEVER, need to take into account changes in activity levels.



thus make flex budget on initial ests but with the assumption that the est x (sales, costs)=actual
level instead of what was initially planned.



gives revenues and costs that should have occurred at the actual lvl of activity.



revenue variance - Answer difference between actual revenue - what it should have been at
actual lvl of activity



could happen due to product mix, discount structure, selling price, poor accting. controls



spending variance - Answer how much spent - what should have been spent at actual lvl of
activity



can be split into

-price variance

actual quantity at actual price- actual quantity of input at standard price =AQ(AP-SP)



price for AAS