There Are Several Reasons Why Actual Results Differ from Standards

question 69

Multiple Choice

There are several reasons why actual results differ from standards.Which of the following does not represent a reason why a variance might occur?

• A)Inaccurate information from the accounting system
• B)Increasing the accuracy of a variance report by decreasing its timeliness
• C)Standards which do not reflect the current economic conditions
• D)Operating conditions that are consistently inefficient
• E)Event or transaction that is unexpected and infrequent

Understand the concept of flexible budgeting and its application to production adjustments.

Distinguish between various components of a master budget including production, sales, and capital expenditures budgets.

Explain the significance of involving employees in the budgeting process to avoid human behavior problems.

Demonstrate the sequential order of preparation for the components within a master budget.

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Definitions:

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The use of theoretical knowledge in a real-world situation to solve practical problems or achieve practical results.

Engaging

Having the quality of attracting or holding interest; captivating or involving attention.

Less Depressed

Experiencing a reduction in symptoms associated with depression, such as sadness, fatigue, or hopelessness.

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An individual's perception, thoughts, and feelings about their own identity, abilities, and traits.