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.
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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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