9–8 What does a flexible budget performance report do that a simple comparison of bud- geted to…

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9–8    What does a flexible budget performance report do that a simple comparison of bud- geted to actual results does not do?

9–9    How does a flexible budget based on two cost drivers differ from a flexible budget based on a single cost driver?

9–10    What assumption is implicitly made about cost behavior when a static planning budget is directly compared to actual results? Why is this assumption questionable?

9–11    What assumption is implicitly made about cost behavior when all of the items in a static planning budget are adjusted in proportion to a change in activity? Why is this assumption questionable?

 

Multiple-choice questions are provided on the text website at www.mhhe.com/garrison14e.

 

 

 

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