Question

In: Accounting

Which of the following is being fulfilled when management compares the budget to actual? results? A....

Which of the following is being fulfilled when management compares the budget to actual? results?

A.

Planning

B.

Directing

C.

Controlling

D.

Adjusting

Solutions

Expert Solution

Correct answer is controlling

--------------------------------------------------------------------------------------------------------------------------

Controlling is a process wherein management compares the actual results with the planned results.

Controlling consists of checking in the case of everything happens in conformities with the plans adopted, directions issued and standards set up. Controlling guarantees that there is compelling and productive usage of organizational resources in order to accomplish the planned goals. Controlling measures the deviation of genuine execution from the standard execution, finds the reasons for such deviations and aides in taking corrective activities.

--------------------------------------------------------------------------------------------------------------------------

Feel free to comment if you need further assistance J

Pls rate this answer if you found it useful.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

q1: On the basis of the budget reports, management analyzes differences between actual and planned results....
q1: On the basis of the budget reports, management analyzes differences between actual and planned results. management may take corrective action. management may modify the future plans. All of these answers are correct. q2: Which one of the statements is correct about controllable costs? More costs are controllable as one moves downward in management levels. Variable costs are controllable and fixed costs are not. A cost is controllable if it is incurred directly in a manager’s division or segment. Allocated...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard direct labour rates and the standard hours allowed, given the actual output in April, are shown in the following schedule: Standard direct labour rate per hour Standard direct labour hours allowed, given April output Labour class III $26.00 1,000 Labour class II $22.00 1,000 Labour class I $12.00 1,000 A new union contract negotiated in March resulted in actual wage rates that differed from...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard direct labour rates and the standard hours allowed, given the actual output in April, are shown in the following schedule: Standard direct labour rate per hour Standard direct labour hours allowed, given April output Labour class III $26.00 1,000 Labour class II $22.00 1,000 Labour class I $12.00 1,000 A new union contract negotiated in March resulted in actual wage rates that differed from...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard...
The accountant for Barry Ltd compares each month’s actual results with a monthly plan. The standard direct labour rates and the standard hours allowed, given the actual output in April, are shown in the following schedule: Standard direct labour rate per hour Standard direct labour hours allowed, given April output Labour class III $26.00 1,000 Labour class II $22.00 1,000 Labour class I $12.00 1,000 A new union contract negotiated in March resulted in actual wage rates that differed from...
The budgeted and actual results for June 2020 are as follows: Budget Actual Production (units) 150,000...
The budgeted and actual results for June 2020 are as follows: Budget Actual Production (units) 150,000 150,500 Direct material A 300,000m2 £675,000 316,050m2 £695,310 Direct material B 900,000 £18,000 1,053,500 £21,070 Direct labour 37,500 hours £318,750 37,625 hours £323,575 Fixed overheads £287,500 £300,623.75 You are required to: Calculate all possible variances from the information provided above for June and use the variances to reconcile the actual cost of production with the standard cost of production. Evaluate the variances calculated in...
A budget variance occurs when the actual results of your financial activity differ from your budgeted...
A budget variance occurs when the actual results of your financial activity differ from your budgeted projections. Please identify what might be causing you budget variances at the moment. What are some microeconomic factors that could be causing this outcome? What are some macroeconomic factors that could be sources of the variance? What might you change in your financial behaviour, budget, or goals to your improve outcomes?
The following information is for X Company for 2017: Master    Actual     Budget    Results    Production 10,900 units...
The following information is for X Company for 2017: Master    Actual     Budget    Results    Production 10,900 units 12,000 units Total variable costs $99,190    $108,226    Total fixed costs $197,300    $201,669    1. What was the 2017 master (static) budget for total costs? 2. What was the 2017 flexible budget for total costs?
The performance report compares data from Remember When’s Inc. static master budget with the actual costs...
The performance report compares data from Remember When’s Inc. static master budget with the actual costs of its Watch Division for the year ended December 31. Remember When, Inc. Performance Report-Watch Division For the Year Ended December 31 Cost Category Budgeted Costs * Actual Costs † Difference Under (Over) Budget Direct materials $42,000 $46,000 ($4,000) Direct labor 10,325 11,779 (1,454) Variable overhead      Indirect materials 3,500 3,600 (100)      Indirect labor 5,250 5,375 (125)      Utilities 1,750 1,810 (60)     ...
Deluca Manufacturing prepared the following cost control report for the prior month: Planning Budget Actual Results...
Deluca Manufacturing prepared the following cost control report for the prior month: Planning Budget Actual Results Variances Direct labor hours 30,000 33,000 Direct materials $45,000 $55,000 $10,000 U Direct labor wages $480,000 $520,000 $40,000 U Maintenance $125,000 $136,000 $11,000 U Utilities $82,000 $86,000 $4,000 U Rent $65,000 $65,000 $0 Depreciation $27,000 $27,000 $0 Total: $824,000 $889,000 $65,000 U Direct materials and direct labor wages are variable costs; rent and depreciation are fixed costs; and maintenance and utilities are mixed costs....
Kite Company has the following report for August: Flexible Sales Actual budget Flexible activity Master Results...
Kite Company has the following report for August: Flexible Sales Actual budget Flexible activity Master Results variances budget variances budget Units ? 12000 4000 U ? Sales revenue ? 12000 F 168000 ? ? Variable mfg. costs 96000 ? ? ? 120000 Variable mktg. costs ? 4800 U 21600 ? ? Contribution margin 57600 ? ? 18800 U 75200 Fill in the missing amounts. For items in the variances columns, indicate F or U.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT