Multiple choice

1. A variance is the difference between _____. 

a. a budgeted amount and a benchmark amount 

b. the required number of inputs for the number of outputs 

c. an actual result and a budgeted amount 

d. a budgeted amount and a standard amount 

2. Efficiency is indicated by _____. 

a.  sales-activity variances 

b. static-budget variances 

c. flexible-budget variances 

d. all of these answers are correct 

3.  Flexible budgets help to measure the _____. 

a. differences between projected and actual activity levels 

b. efficiency of operations at the actual activity level 

c. amount by which standard quantity and expected prices differ 

d. reasons why projected activity levels were not attained 

4  Identify which of the following statements about "perfection standards" is true. 

a. It is generally believed that they have a negative influence on employee morale. 

b. They are expressions of the most efficient performance possible. 

c. They usually result in unfavorable variances. 

d. All of these answers are correct.