Q1. A flexible budget is a budget that is:
A.set prior to the control period and not subsequently changed in response to changes in activity period has expired
B. continuously updated by adding a further accounting period when the earliest accounting period has expired
C. changed in response to changes in the level of activity
D. changed in response to changes in costs
Correct Answer: C
Q2. A company uses a standard costing system. The company's sales budget for the latest period includes 1,500 units of a product with a selling price of $400 per unit. The product has a budgeted contribution to sales ratio of 30%. Actual sales for the period were 1,630 units at a selling price of $390 per unit. The actual contribution to sales ratio was 28%. The sales volume contribution variance for the product for the latest period is:
A.$15, 600 F
B. $17, 800 F
C. $55, 600 F
D. $32, 900 F
Correct Answer: A
Q3. A flexible budget is a budget that is:
A.set prior to the control period and not subsequently changed in response to changes in activity period has expired
B. continuously updated by adding a further accounting period when the earliest accounting period has expired
C. changed in response to changes in the level of activity
D. changed in response to changes in costs
Correct Answer: C
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