Select the Term That Best Fits the Definition or Description;

Essay

Select the term that best fits the definition or description; enter the number of the term in the column for Your Answer. $\begin{array}{|l|l|l|}\hline \text { Your Answer } & \text { Definution or Description } & \text { Term } \\\hline & \begin{array}{l}\text { A. The difference between actual sales in dollars and the } \\\text { standard sales price per unit times the actual level of activity }\end{array} & \text { 1. Economies of scale } \\\hline & \begin{array}{l}\text { B. A variance that occurs when the amount of applied } \\\text { overhead differs from the actual overhead costs }\end{array} & \text { 2. Flexible budgets } \\\hline& \begin{array}{l}\text { C. Budgets that show expected revenues and costs for muliple } \\\text { levels of activity }\end{array} & \text { 3. Lax standards } \\\hline & \text { D. Differences between standard and actual amounts } & \text { 4. Making the numbers } \\\hline & \begin{array}{l}\text { E. The lower unt cost advantage possible for companies with } \\\text { ligh fixed costs when volme increases }\end{array} & \text { 5. Management by exception } \\\hline &\begin{array}{l}\text { F. Standard representing a level of performance attainable with } \\\text { reasonable effort }\end{array} & \text { 6. Practical standard } \\\hline & \begin{array}{l}\text { G. Marketing managers attaining the sales vohume indicated in } \\\text { the master bodget }\end{array} & \text { 7. Sales price variance } \\\hline &\begin{array}{l}\text { H. Easily attainable goals that can be accomplished with } \\\text { minimal effort }\end{array} & \text { 8. Total overhead variance } \\\hline& \begin{array}{l}\text { I. The use of management resources in areas that are not } \\\text { performing in accordance with expectations }\end{array} & \text { 9. Unfavorable variance } \\\hline &\begin{array}{l}\text { J. A variance that occurs when actual costs exceed standard } \\\text { costs or when actual sales are less than standard sales }\end{array} & \text { 10. Variances } \\\hline\end{array}$ First set of changes are due to wording in text ("…Melrose has a fixed cost volume variance of $16,200 ($307,800 budgeted fixed cost − $291,600 applied fixed cost)"
CHANGES NEED TO BE MAD TO TABLE
Term #8 - Reword as:
Fixed cost volume variance
Item B to:
Difference between applied fixed cost based on actual volume and the budgeted fixed cost based on planned volume
Since the term "economies of scale" is not in the chapter:
Remove item E
Remove term #1
Reletter and renumber remaining items and terms.