Question Details

An internal report that helps management analyze 



1. An internal report that helps management analyze the difference between actual performance and
budgeted performance based on the actual sales volume (or other level of activity), and which presents
the differences between actual and budgeted amounts as variances, is called a(n):
A. Sales budget performance report.
B. Flexible budget performance report.
C. Master budget performance report.
D. Static budget performance report.
E. Operating budget performance report.
2. A flexible budget is prepared:
A. Before the operating period only.
B. After the operating period only.
C. During the operating period only.
D. At any time in the planning period.
E. A flexible budget should never be prepared.
3. A company's flexible budget for 12,000 units of production showed sales, $48,000; variable costs,
$18,000; and fixed costs, $16,000. The operating income expected if the company produces and sells
16,000 units is:
A. $2,667.
B. $14,000.
C. $18,667.
D. $24,000.
E. $35,000.
4. Based on predicted production of 12,000 units, a company anticipates $150,000 of fixed costs and
$123,000 of variable costs. The flexible budget amounts of fixed and variable costs for 10,000 units
are:
A. $125,000 fixed and $102,500 variable.
B. $125,000 fixed and $123,000 variable.
C. $102,500 fixed and $150,000 variable.
D. $150,000 fixed and $123,000 variable.
E. $150,000 fixed and $102,500 variable.
5. Product A has a sales price of $10 per unit. Based on a 10,000-unit production level, the variable costs
are $6 per unit and the fixed costs are $3 per unit. Using a flexible budget for 12,500 units, what is the
budgeted operating income from Product A?
A. $12,500.
B. $25,000.
C. $20,000.
D. $30,000.
E. $35,000.




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