If the sales budget variance is $47000 and the flexible budget amount is $77000, then the static budget amount will be __________?
Correct answer: D. $30,000
- A. $144,000
- B. $134,000
- C. $124,000
- D. $30,000
Explanation
The static budget equals the flexible budget amount less the sales budget variance: $77,000 − $47,000 = $30,000. The $144,000, $134,000 and $124,000 choices incorrectly add the variance or use unrelated figures.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the flexible budget amount is $27000 and flexible budget variance is $12000, then actual result amount would be _____________?
If the sales budget variance for operating income is $58000 and the static budget amount is $15000, then flexible budget amount will be _____________?
The production volume variance is also called __________?
If the sales budget variance is $57000 and the flexible budget amount is $97000, then the static budget amount will be _____________?
The flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be __________?
An actual selling price is subtracted from budgeted selling price, and then multiplied to actual sold units to calculate _____________?