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SingaporeAccountingQuick questions

Budgeting and Decision Making

Quick questions on Flexible budgets and variances explained: H2 Principles of Accounting

4short Q&A pairs drawn directly from our worked dot-point answer. For full context and worked exam questions, read the parent dot-point page.

What are sales variances?
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Sales variances explain why revenue or contribution differed:
What is q1?
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Standard price is \5perkg;actualwas per kg; actual was \5.205.20 for 3000kg3\,000\,\text{kg} used. Find the material price variance and its label. [2 marks]
What is q2?
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Explain why fixed costs are not flexed when preparing a flexible budget. [2 marks]
What is q3?
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A favourable sales price variance accompanies an adverse sales volume variance. Suggest a link. [3 marks]

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