If the sales budget variance is $57000 and the flexible budget amount is $97000, then the static budget amount will be _____________?
Correct answer: A. $40,000
- A. $40,000
- B. $154,000
- C. $164,000
- D. $124,000Government & Public Sector Jobs
Explanation
Static budget amount is calculated as flexible budget amount minus sales budget variance: $97,000 − $57,000 = $40,000. Thus the variance represents the difference between the two budget levels.
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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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