Questions from Managerial Accounting

Q: Discuss the differences between static and flexible budgets.

Discuss the differences between static and flexible budgets.

Q: Does the volume variance convey any meaningful information to managers?

Does the volume variance convey any meaningful information to managers?

Q: Which do you think is more important for control of fixed overhead

Which do you think is more important for control of fixed overhead costs: the spending variance or the volume variance? Explain.

Q: Explain how an activity-based budget is prepared.

Explain how an activity-based budget is prepared.

Q: What is the difference between an activity flexible budget and a traditional

What is the difference between an activity flexible budget and a traditional-based flexible budget?

Q: During the most recent year, Osterman Company had the following data

During the most recent year, Osterman Company had the following data: Units in beginning inventory ……….………………………………… — Units produced ..……………………………………………………. 10,000 Units sold ($47 per unit) ……………………...

Q: Why are flexible budgets superior to static budgets for performance reporting?

Why are flexible budgets superior to static budgets for performance reporting?

Q: Explain why mixed costs must be broken down into their fixed and

Explain why mixed costs must be broken down into their fixed and variable components before a flexible budget can be developed.

Q: What is the purpose of a before-the-fact flexible

What is the purpose of a before-the-fact flexible budget?

Q: What is the purpose of an after-the-fact flexible

What is the purpose of an after-the-fact flexible budget?