Indicate Whether Each of the Following Statements Is True or False

question 8

Short Answer

Indicate whether each of the following statements is true or false.
A variance is a difference between an expected amount and a standard amount.______
When actual sales revenue exceeds the expected revenue,a company has a favorable sales variance.______
A cost variance is considered to be unfavorable when actual costs are less than standard costs.______
A company can calculate variances for both revenues and costs.______
Flexible budgets can be used for planning,but not for performance evaluation.______

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Definitions:

Fair Market Value

The price at which an asset would sell under normal market conditions, reflecting the value between willing buyers and sellers.

Operating Policies

Guidelines and regulations formulated by an organization to govern its operational activities and decision-making.

50% Interest

Ownership interest that represents half of the equity capital or voting power in an entity or investment.

Voting Stock

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors.