Ch 9 PCP

estimates of what revenues and costs should have been based on the actual level of activity are shown on the

flexible budget

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 _____ variance

activity

what is the difference between flexible budgeted revenue and planning revenue

activity variance

true or false: a static budget is being compared to actual activity. The variance is F for net income but U for most expenses. This suggests that actual activity was lower than budgeted

false. actual activity was higher than expected which results in higher net income and expenses

when comparing the static planning budget to actual activity, a problem that arises when actual activity is higher than budgeted activity is that _____

net income is higher than excepted but all or most expense variances are unfavorable

a cost centers performance report does not include _____

net operating income

a budget that is prepared at the beginning of the period for a specific level of activity is called a ____ budget

planning

revenue variance

the difference between how much revenue should have been given the actual level of activity and the actual revenue

companies use the ___ ____ cycle to evaluate and improve performance

variance analysis