Match each of the following terms with their correct description from the items listed below.* Each term may be used more than once, and it is possible that one or more of the classifications may not be used at all.
-Prediction of what activity costs will be as activity output changes
A)Variable overhead efficiency variance
B)Activity flexible budget
C)Fixed overhead volume variance
D)Variable overhead spending variance
E)Flexible budget variance
F)Flexible budget
G)Static budget
H)Activity-based budgeting
I)Performance report
J)Fixed overhead spending variance

Question

Quizplus · Accepted Answer

Activity flexible budget is a budget that shows the expected costs for a range of activity levels. It is used to predict what activity costs will be as activity output changes.

Answer: E
 Flexible budget variance is the difference between actual costs and the flexible budget amount. It measures the impact of the actual activity level on costs.

Answer: H
 Activity-based budgeting is a budgeting method that focuses on the relationship between costs, activities, and products/services. It involves identifying the activities that drive costs and developing budgets based on those activities.

Answer: I
 Performance report is a report that compares actual results with budgeted or expected results. It provides feedback on how well the organization is achieving its goals.

Note: The other classifications (A, C, D, F, G, J) are all related to variances in overhead costs and budget comparisons, but they do not match the description of predicting activity costs as activity output changes.

Match Each of the Following Terms with Their Correct Description