Accounting Chapter 8 Flashcards | Quizlet Variances occur only because the budgets are created using different volumes of activity Since total fixed cost is not affected by the level of activity, there will be no fixed cost variances associated with static versus flexible budgets
fiii in the blank question variable selling. general, and . . . A favorable variance occurs when actual costs are less than the standard or budgeted costs An unfavorable variance occurs when actual costs are more than the standard or budgeted costs Therefore, variable selling, general, and administrative costs can have both favorable and unfavorable variances
Solved Select the correct statement regarding general, - Chegg Variable general, selling, and administrative costs can have price variances Variable general, selling, and administrative costs cannot have usage variances Cost variances are not generally computed for fixed general, selling, and administrative costs All of these answers are correct
Fill in the blanks with the variances and whether they are Answer and Explanation: Spending variance and activity variance are two types of variances used in cost accounting Spending variance compares actual costs to expected costs, while activity variance compares actual usage to expected usage of resources
Revenue variances — AccountingTools Revenue variances measure the difference between expected and actual sales They are needed to determine the success of an organization's selling activities
Flexible Budgets - CliffsNotes A budget report is prepared to show how actual results compare to the budgeted numbers It has columns for the actual and budgeted amounts and the differences, or variances, between these amounts A variance may be favorable or unfavorable