What do the costs in a flexed budget represent?
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1 .Which of the following statements relating to a fixed budget is correct?
A Should never be prepared as it has no purpose B Is useful in evaluating a manager’s performance by comparing actual costs against planned costs C Shows planned results at the original budgeted activity level D Is changed only if the actual level of activity is different than originally budgeted
2 .What is the primary difference between a fixed budget and a flexible budget?
A A fixed budget contains only fixed costs, while a flexible budget also contains variable costs B A fixed budget reflects different activity levels, while a flexible budget is prepared for a single level of activity C A fixed budget is prepared for a single level of activity, while a flexible budge...
3 .Which of the following statements relating to a flexible budget is correct?
A It is prepared when management cannot agree on objectives for the company B It provides budgeted data for various levels of activity C It takes account of the cost behavior of variable costs only D Flexible budgets do not need to be flexed for comparison with actual results
5 .How will the comparison of differences between actual and planned results be reported?
A In the company’s published financial statements B In an internal auditor’s report to the board of directors C Orally in departmental meetings D In written control reports to management
6 .The following statements relate to spreadsheets:(1) They are an efficient method of storing text-based files.(2) They facilitate ‘what if’ analysis(3) They allow data to be displayed graphically(4) They allow the font, size and colour of text to be changed.Which statements are true?
A 1, 2 and 3 only B 1, 2 and 4 only C 1, 3 and 4 only D 2, 3 and 4 only
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A USD816 B USD864 C USD936 D USD1,800
