Ch 9 SB

A spending variance is the ______.

difference between what a cost should have been at the actual level of activity and the actual amount of the cost

The flexible budget performance report consists of ______.

revenue and spending variances activity variances the planning budget, flexible budget and actual results

The difference between how much a cost should have been, given the actual level of activity, and the actual amount of the cost is a(n) __________ variance.

spending

Companies use the __________ ____________ cycle to evaluate and improve performance.

variance analysis

A performance report shows that the planning revenue was $240,000, the flexible budget revenue was $225,000, and actual revenue was $230,000. The activity variance is $

15000; unfavorable

Comparing actual costs to what the costs should have been for the actual level of activity is done on a(n) _________ budget.

flex

Fancy Nail's monthly rent is $2,500. The company's static budget for March was based on the activity level of 2,000 manicures. Total sales was budgeted at $40,000 and nail technician wages (a variable cost based on the number of manicures) was budgeted at $20,000. Actual manicures in March totaled 2,200. Assuming no other expenses, Fancy Nails' flexible budget will show ______.

net operating income of $19,500 sales of $44,000

The difference between what the total sales should have been, given the actual level of activity for the period, and the actual total sales is a(n) _______________ activity.

revenue

A cost center's performance report does not include ______.

revenue net operating income