In the static budget, the difference between corresponding budgeted amount and actual result is called ____________?
Correct answer: D. static budget variance
- A. sales mix variance
- B. sales volume variance
- C. flexible budget variance
- D. static budget variance
Explanation
A static budget variance compares the original static-budget amount with the actual result. A flexible-budget variance compares the flexible budget with the actual result, so it is not the required term here.
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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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