Chapter 7: 
                                                 FLEXIBLE BUDGETS 
                                              & VARIANCE & VARIANCE ANALYSISANALYSIS
                      H 1Horngren 133e  
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                          Learning Objective 1: Distinguish a static budget . . . the master budget based 
                                                  on outppput planned at start of pperiod from a flexible 
                                                  budget. . . the budget that is adjusted (flexed) to 
                                                  recognize the actual output level
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                          Learning Objective 1: Distinguish a static budget . . . the master budget based 
                                                  on outppput planned at start of pperiod from a flexible 
                                                  budget. . . the budget that is adjusted (flexed) to 
                                                  recognize the actual output level
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                  Learning Objective 2: Develop a flexible budget. . . proportionately increase variable costs; 
                                          keeppp fixed costs the same and compute flexible-budgget variances . . . 
                                          flexible-budget variance Æ the difference between an actual result and 
                                          a flexible-budget amount…
                                          sales-volume variances Æ each sales-volume variance is the difference 
                                          between a flexible-budget amount and a static-budget amount
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                 Learning Objective 2: Develop a flexible budget. . . proportionately increase variable costs; 
                                        keeppp fixed costs the same and compute flexible-budgget variances . . . 
                                        flexible-budget variance Æ the difference between an actual result and 
                                        a flexible-budget amount…
                                        sales-volume variances Æ each sales-volume variance is the difference 
                                        between a flexible-budget amount and a static-budget amount
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                                  Flexible-Budget-Based Variance Analysis
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                      Columnar Presentation of Variance Analysis (Direct Costs)
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                            Summary of Levels 1, 2, and 3 Variance Analysis
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