ACCT 202 - Managerial Accounting Budgeting and Variance Analysis Exam Review
Michigan State University
ACCT 202 - Managerial Accounting | Exam Review

Overview
A review of master budgets, flexible budgets, and variance analysis with the formulas students search before accounting exams.

Key topics
•budgeting flow
•flexible budget logic
•price and quantity variances
•management interpretation

Suggested study tasks
•build a simple budget sequence
•separate volume from spending effects
•explain one favorable variance that is actually concerning

Common pitfalls
•using actual output with the wrong budget
•mixing price and quantity variance formulas
•stopping at the number without interpretation