Question 1
The difference between actual results and master budget amounts is referred to as
◦ an efficiency variance.
◦ a static budget variance.
◦ a flexible budget variance.
◦ a spending variance.
Question 2
A favorable variance is a variance that
◦ increases operating income relative to the budgeted amount.
◦ increases costs relative to the budgeted amount.
◦ decreases operating income relative to the budgeted amount.
◦ decreases cash relative to the budgeted amount.