If the static budget amount is $6200 and the flexible budget amount is $4500, then the sales volume variance will be _________?
Correct answer: B. $1,700
- A. $6,200
- B. $1,700
- C. $17,000
- D. $4,500
Explanation
Sales volume variance is the difference between the flexible budget and the static budget: $4,500 − $6,200 = −$1,700. Its unfavorable amount is therefore $1,700.
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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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