This quiz works best with JavaScript enabled. Home > Finance > Accounting > Budgeting > Flexible Budgets > Flexible Budgets – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Flexible Budgets Quiz 2 (7 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If actual costs are greater than standard costs, there is a(n) A) Unfavorable variance. B) Favorable variance. C) Error in the accounting system. D) Normal variance. Show Answer Correct Answer: A) Unfavorable variance. 2. Comparing actual results to a budget based on actual activity for the period is possible with the use of a: A) Static budget. B) Flexible budget. C) Master budget. D) Planning budget. Show Answer Correct Answer: B) Flexible budget. 3. Managers use budgets for ..... business activities. A) Planning. B) Controlling. C) Planning and controlling. D) None of above. Show Answer Correct Answer: C) Planning and controlling. 4. The master budget focuses on A) The controlling step. B) The planning step. C) Budget risk. D) None of above. Show Answer Correct Answer: B) The planning step. 5. One way of analyzing the variable factory overhead variance is breaking it down into A) Variable overhead spending and rate variance. B) Variable overhead efficiency and volume variance. C) Variable overhead spending and capacity variance. D) Variable overhead spending and efficiency. Show Answer Correct Answer: D) Variable overhead spending and efficiency. 6. TAZ Company had the following information pertaining to 2016:Sales P 2, 000, 000Profit 240, 000Asset Turnover 2.5 timesThe desired minimum rate is 20%What is the residual income? A) P 80, 000. B) (P 100, 000). C) (P 80, 000). D) P 100, 000. Show Answer Correct Answer: A) P 80, 000. 7. Which of the following is true about flexible budgeting? A) Flexible budgets are prepared for one specific activity level. B) Total variable costs change in direct proportion to changes in activity. C) Total fixed costs change within the relevant range. D) None of above. Show Answer Correct Answer: B) Total variable costs change in direct proportion to changes in activity. ← PreviousRelated QuizzesBudgeting QuizzesAccounting QuizzesFlexible Budgets Quiz 1 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books