ACC 311 EXAM 3 STUDY SHEET INCLUDING
ALL ACTUAL EXAM QUESTIONS AND
SOLUTIONS 2026.
◍ A disadvantage of a static budget is: Answer: It is based on only
one level of activity
◍ A variance is: Answer: the difference between an actual result and
a budgeted performance
◍ If a sales-volume variance was caused by poor-quality products,
then the ________ would be in the best position to explain the
variance. Answer: production manager
◍ In a flexible budget: Answer: fixed costs are kept at the same level
of static budget
◍ An unfavorable sales-volume variance could result from: Answer:
competitors taking market share
◍ Which of the following information is needed to prepare a flexible
budget?
actual variable cost
actual selling price per unit
, actual fixed cost
actual units sold Answer: actual units sold
◍ The flexible budget contains: Answer: budgeted amounts for
actual output
◍ Compared to variable overhead costs planning, fixed overhead
costs planning has an additional strategic issue beyond undertaking
only essential activities and efficient operations. That additional
requirement is best described as: Answer: choosing the appropriate
level of capacity that will benefit the company in the long run
◍ Fixed overhead costs include: Answer: leasing of machinery used
in a factory
◍ Most of the decision determining the level of fixed overhead costs
to be incurred will be made: Answer: at the start of a budget period
◍ Which of the following best defines standard costing? Answer: It
is a system that traces direct costs to output produced by multiplying
the standard prices or rates by the standard quantities of inputs
allowed for the actual output produced.
◍ The variable overhead spending variance measures the difference
between _____, multiplied by the actual quantity of variable overhead
cost-allocation base used. Answer: the actual variable overhead cost
per unit and the budgeted variable overhead cost per unit
ALL ACTUAL EXAM QUESTIONS AND
SOLUTIONS 2026.
◍ A disadvantage of a static budget is: Answer: It is based on only
one level of activity
◍ A variance is: Answer: the difference between an actual result and
a budgeted performance
◍ If a sales-volume variance was caused by poor-quality products,
then the ________ would be in the best position to explain the
variance. Answer: production manager
◍ In a flexible budget: Answer: fixed costs are kept at the same level
of static budget
◍ An unfavorable sales-volume variance could result from: Answer:
competitors taking market share
◍ Which of the following information is needed to prepare a flexible
budget?
actual variable cost
actual selling price per unit
, actual fixed cost
actual units sold Answer: actual units sold
◍ The flexible budget contains: Answer: budgeted amounts for
actual output
◍ Compared to variable overhead costs planning, fixed overhead
costs planning has an additional strategic issue beyond undertaking
only essential activities and efficient operations. That additional
requirement is best described as: Answer: choosing the appropriate
level of capacity that will benefit the company in the long run
◍ Fixed overhead costs include: Answer: leasing of machinery used
in a factory
◍ Most of the decision determining the level of fixed overhead costs
to be incurred will be made: Answer: at the start of a budget period
◍ Which of the following best defines standard costing? Answer: It
is a system that traces direct costs to output produced by multiplying
the standard prices or rates by the standard quantities of inputs
allowed for the actual output produced.
◍ The variable overhead spending variance measures the difference
between _____, multiplied by the actual quantity of variable overhead
cost-allocation base used. Answer: the actual variable overhead cost
per unit and the budgeted variable overhead cost per unit
