Chapter 9 - 242

-Net operating Income -Revenue

A cost center's performance report does not include:

-what revenue should have been at the actual level of activity -what fixed costs should have been at the actual level of activity -What variable costs should have been at the actual level of activity

A flexible budget shows:

Difference between what revenue should have been at the actual level of activity and the actual revenue

A revenue variance is the:

Flexible Budget

An estimate of what revenue and costs should have been, based on the actual level of activity is shown on a _____

variance analysis

Companies use the _______ ________ cycle to evaluate and improve performance

Variable costs should increase by 20%

If activity increases by 20%:

Unfavorable

If the actual cost is greater than what the cost should have been, the variance is labeled as ________

Static

Planning budgets are sometimes called _______ budgets

Flexible

Revenues and costs are adjusted as the level of activity changes on a ______ budget

Activity

The difference between a revenue or cost item in the planning budget and the same item in the flexible budget at the actual level of activity is a(n) ______ variance

Spending

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 _____ variance