Question : 61. Select the correct statement regarding flexible budgets. A. A flexible budget not : 1208295

61. Select the correct statement regarding flexible budgets. 
A. A flexible budget is not used for planning.
B. A flexible budget is prepared for a single level of activity.
C. A flexible budget is also known as the master budget.
D. A flexible budget shows expected revenues and costs at a variety of activity levels.

62. Which of the following is a reason flexible budgets can be useful planning tools? 
A. Flexible budgets allow managers to anticipate results under a variety of scenarios.
B. Flexible budgets can help determine if a company’s cash position is adequate.
C. Flexible budgets can help managers judge if materials and storage facilities are appropriate for various production levels.
D. All of the other answers are correct.

63. Which of the following is a difference between a static and a flexible budget? 
A. Static budgets are based on single estimate of volume, whereas flexible budgets show estimated costs and revenues at a variety of activity levels.
B. Static budgets are based on the same per unit variable amount, whereas flexible budgets are based on multiple per unit variable amounts.
C. Static budgets use the same fixed cost amounts, whereas flexible budgets change the amount of fixed costs at different levels of activity.
D. None of the other answers are correct.

64. Which of the following is an incorrect statement regarding variances? 
A. A variance can be calculated for both revenues and expenses.
B. A variance is a difference between budgeted and actual amounts.
C. A variance is unfavorable when expected sales are more than actual sales.
D. A variance can only be calculated for revenues.

65. When would a sales variance be listed as favorable? 
A. When actual sales exceed budgeted or expected sales
B. When actual sales are less than budgeted or expected sales
C. When actual sales are equal to budgeted or expected sales
D. None of the other answers are correct.

66. When would a cost variance be listed as unfavorable? 
A. When actual costs exceed budgeted costs
B. When actual costs are less than budgeted costs
C. When actual costs are equal to budgeted costs
D. None of the other answers are correct.

67. The sales volume variance is 
A. The difference between the static budget (based on planned volume) and the flexible budget (based on actual volume).
B. The difference between the static budget (based on actual volume) and the flexible budget (based on planned volume).
C. The difference between the static budget (based on actual volume) and the flexible budget (based on actual volume).
D. The difference between the static budget (based on planned volume) and the flexible budget (based on planned volume).

68. Which manager is generally held responsible for the sales volume variance? 
A. Production manager
B. Marketing manager
C. Plant manager
D. Purchasing agent

69. Achieving the sales volume in the master budget is known as: 
A. Cooking the books.
B. Lowballing.
C. Making the numbers.
D. Budget slack.

70. When would a sales price variance be listed as unfavorable? 
A. When the actual sales price is less than the standard sales price.
B. When the actual sales price is equal to the standard sales price.
C. When actual sales price is greater than the standard sales price.
D. None of the other answers are correct.