If the static budget is $405000 and the flexible budget amount is $620000, then the sales budget variance will be ___________?
Correct answer: A. $215,000
- A. $215,000
- B. $315,000
- C. $415,000
- D. $515,000
Explanation
The variance is the difference between the flexible and static budget amounts: $620,000 − $405,000 = $215,000. Thus, option a matches the numerical calculation.
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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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