Standard costing

Question 1

Fixed budget

Answer 1

(original budget prepared, goes out of date quickly)

Question 2

Flexed Budget

Answer 2

Rewrite the budget for the actual level of activity

Question 3

Rolling budget

Answer 3

updated monthly

Question 4

What is standard costing

Answer 4

this refers to a predetermined (target) per unit cost of the products/components/services produced in a period

Question 5

A flexible budget is to use standard cost to reflect …..

Answer 5

the change of budget when the volume of activity changes.

*this may be done for comparability - to easily compare the budgeted date vs the actual figures.