The Budget Variance Arises from a Comparison Of

question 3

Multiple Choice

The budget variance arises from a comparison of:

• A) budgeted fixed overhead expenditures with budgeted fixed overhead costs.
• B) actual fixed overhead costs with budgeted fixed overhead costs.
• C) actual variable overhead expenditures with budgeted variable overhead costs.
• D) variable overhead costs with budgeted fixed overhead costs.
• E) static-budget amounts with flexible-budget amounts.

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Definitions:

Return Method

A sales return approach where the selling price of returned goods is deducted from gross sales to calculate net sales.

Capital Investment Analysis

The process by which management plans, evaluates, and controls long-term capital investments involving property, plant, and equipment.

Fixed Assets

Fixed Assets are long-term tangible assets purchased for use in business operations, intended to be used for more than one accounting period.

Long-term Investment

Investments made by a company to hold for more than one year, often in bonds, stocks, or real estate.