COMM-2016EL Study Guide - Final Guide: Variable Cost

• School: Laurentian
• Department: Commerce and Administration
• Course: COMM-2016EL
• Professor: Kayla Levesque

Document Summary

It is based on only one level of output. It is not adjusted for volume after it is set. Static budget variance is the difference between the static budget amount and the actual results! The variance is considered favourable if actual results have a higher operating income than the static budget showed! The variance is unfavourable if actual results show operating income less than the static budget. Is a budget that is calculated using the budgeted (standard) revenue and/or cost amounts based on the level of output actually achieved! You use the budgeted quantities, & budgeted unit prices and budgeted unit costs for the actual amount of finished goods produced and sold! Flexible budget variance is the difference between the flexible budget amount and the actual results! (hint: note the static budget variance is the difference between the static budget amount and the actual results!