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Exercise - 1
    1    An unfavorable flexible - budget variance for variable costs may result from :
        B . Paying higher prices for inputs than were budgeted.
        Cost Variance = Actual Cost - Standard Cost.
        Actual Cost = Actual Qty x Actual Price.
        Standard Cost = Standard Qty x Standard Price.
    2    TTM manufactures a spare part for cordless vacum cleaners, some of the company's data was misplaced. Use the following information to replace the lost data.
            Actual Results    Flexible Budet    Flexible Budget    Sales- Volume    Static Budget
                Variance        Variance
        Units Sold    112,500        112,500        80,000
        Revenue    102,000    17,625 F    A    24375 F    B
        Variable Costs    C    7200 U    56,250    16250 U    40,000
        Fixed Costs    10,000    860 U    9,140    -    9,140
        Operating Income    28550    D    18,985    E    10,860
    a    What are the flexible budget revenues (A) ?
        Add : 56,250 +9140+18,985
        84,375    OR    =    (102,000 - 17625)    84,375
    b    What are the static -budget revenues(b) ?
        Add : Variable Cost + Fixed Costs +Operating Income
        60,000
    c    What are the actual Variable Costs ( C) ?
        Revenue - Fixed Costs - Operating Income
        102,000 -10,000 -28,550
        63,450
    d    What is the total flexible-budget variance (D) ?
        Net of all Variance
    =    17,625 F + 7,200 U + 860 U.
    =    9,565
    e    What is the total sales - volume variance (E) ?
    =    24,375 F - 16,250 U
    =    8,125 F
    f    What is the total Static- budget variance ?
        Total Static Budet Variance is difference between actual results and the static budget.
        Actual Revenue - Static Budget
    =    102,000 - 60,000
    =    42,000 F
    3    Explain in a few sentences the purpose of the Balanced Scorecard Process, Why is it useful to implement it in a given company ?
    a    Balance Score Card process measures the actual process with the standard, any deviations are recornized at the process level at the early stage.
    b    It prioritize the products and processes to the organizational objectives.
    c    Each process or the day-to-day tasks are aligned to the strategic process.
    d    More importantly conveys the what the organizational needs are and what are the strategic ways to acomplish the tasks down the hierarchy.
Excercise...