If an actual result is $250000 and the static budget amount is $150000, then the static budget variance for operating income will be ____________?
Correct answer: C. $100,000
- A. $400,000
- B. $500,000
- C. $100,000
- D. $600,000Try Statistical Software
Explanation
Static budget variance equals the actual result minus the static-budget amount: $250,000 − $150,000 = $100,000. The positive difference indicates favorable operating-income performance.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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