If the flexible budget amount is $7500 and the sales volume variance is $6500, then the static budget amount would be ____________?
Correct answer: C. $1,000
- A. $7,500
- B. $6,500
- C. $1,000
- D. $10,000
Explanation
Sales volume variance is the difference between the flexible and static budgets. Therefore, the static budget amount is $7,500 − $6,500 = $1,000.
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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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