Accounting Ch. 21
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, Budget reports are commonly prepared for: (Check all that a quarter.
apply). a year.
a quarter. a month.
a year.
a month.
a week.
A(n) _____ budget is based on one predicted amount of fixed
sales or other activity measure.
The fixed budget indicates sales of $50,000. Actual sales $5,000 favorable
were $55,000. The variance is:
The fixed budget indicates direct labor costs of $27,500. $500 favorable
Actual direct labor costs were $27,000. The variance is:
A flexible budget prepared (before/after) ______ the period before
begins allows management to make adjustments to
increase profits or decrease losses.
Budget ____compare actual results to budgeted results. reports
A company sells a product for $3. Direct materials are 90 (1.8 x 50)
$1.80 per unit. The company prepares a flexible budget at 108 (1.8 x 60)
two sales volumes. At a sales volume of 50 units,
budgeted direct materials will be $_________ . At a sales
volume of 60 units, budgeted direct materials will be
$__________.
The static budget is an example of a: fixed budget
A company budgets administrative salaries at $5,000 at a 5000
sales level of 1,000 units. At a sales level of 1,200 units,
budgeted administrative salaries will be $
When compared to the budgeted amount, if the actual cost favorable
or revenue contributes to a higher income, then the
variance is considered
When preparing a flexible budget, variable costs are per unit; in total
expressed as a constant amount _____, and fixed costs
are expressed as a constant amount _____.
When compared to the budgeted amount, if the actual cost unfavorable
or revenue contributes to a lower income, then the
variance is considered
SmartBook 2026 | Study
Guide, Practice Questions,
Answers, Rationales &
Exam Review | Complete
Ethics Study Guide
Updated 2026 Questions and Answers
100% Verified Exam Prep and Comprehensive
Rationales
Included
, Budget reports are commonly prepared for: (Check all that a quarter.
apply). a year.
a quarter. a month.
a year.
a month.
a week.
A(n) _____ budget is based on one predicted amount of fixed
sales or other activity measure.
The fixed budget indicates sales of $50,000. Actual sales $5,000 favorable
were $55,000. The variance is:
The fixed budget indicates direct labor costs of $27,500. $500 favorable
Actual direct labor costs were $27,000. The variance is:
A flexible budget prepared (before/after) ______ the period before
begins allows management to make adjustments to
increase profits or decrease losses.
Budget ____compare actual results to budgeted results. reports
A company sells a product for $3. Direct materials are 90 (1.8 x 50)
$1.80 per unit. The company prepares a flexible budget at 108 (1.8 x 60)
two sales volumes. At a sales volume of 50 units,
budgeted direct materials will be $_________ . At a sales
volume of 60 units, budgeted direct materials will be
$__________.
The static budget is an example of a: fixed budget
A company budgets administrative salaries at $5,000 at a 5000
sales level of 1,000 units. At a sales level of 1,200 units,
budgeted administrative salaries will be $
When compared to the budgeted amount, if the actual cost favorable
or revenue contributes to a higher income, then the
variance is considered
When preparing a flexible budget, variable costs are per unit; in total
expressed as a constant amount _____, and fixed costs
are expressed as a constant amount _____.
When compared to the budgeted amount, if the actual cost unfavorable
or revenue contributes to a lower income, then the
variance is considered
