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.