A Process of Examining the Differences Between Actual and Budgeted

question 63

Multiple Choice

A process of examining the differences between actual and budgeted costs and describing them in terms of the amounts that resulted from price and quantity differences is called:

• A) Cost analysis.
• B) Flexible budgeting.
• C) Variable analysis.
• D) Cost variable analysis.
• E) Variance analysis.

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Definitions:

Bar Graph

A graph that uses bars of varying heights or lengths to show the comparative sizes of different observations of a variable.

Linear Curve

A linear curve is a straight line graphically showing the relationship between two variables, with a constant slope and no curvature.

Slope

In mathematics, the measure of the steepness or incline of a line, expressed as the ratio of the vertical change to the horizontal change.

Scatter Diagram

A graph that shows points that correspond to actual observations of the x- and y-variables; a curve is usually fitted to the scatter of points to indicate the trend in the data.