ACCT 526 - Ch. 9 Exam 100% Solved!

Budgets can be improved as performance measures by: a. using fixed budgeting. b. using participative budgeting. c. setting standards that are either too high or too low. d. holding managers accountable for noncontrollable costs. - ANSWERSb. using participative budgeting. _____ is an example of a monetary incentive used to control a manager's tendency to shirk and waste resources. a. A promotion b. A recognition program c. Increased responsibility d. Job enrichment - ANSWERSa. A promotion Which of the following is true of flexible budgets? a. Flexible budget formulas are often based on number of units instead of direct labor hours. b. Flexible budgets are created in advance and are based on a particular level of activity. c. Flexible budgets enable firms to compute expected costs for a range of activity levels. d. Flexible budgets are usually not a good choice for benchmarks in preparing a performance report. - ANSWERSc. Flexible budgets enable firms to compute expected costs for a range of activity levels. A flexible budget variance is the difference between: a. the actual amount and the flexible budget amount. b. the static budget amount and the flexible budget amount. c. the variable budget amount and the flexible budget amount. d. the master budget amount and the flexible budget amount. - ANSWERSa. the actual amount and the flexible budget amount. The actual and budgeted costs for Learner Corp.'s actual level of activity are as follows: Actual Costs Budgeted Costs Units produced 1,500 1,500 Direct materials cost $5,600 $5,090 Direct labor cost 1,700 1,500 VOH: Maintenance 720 635 Power 280 150 FOH: