The difference between an actual budget and the corresponding amount in static budget is classified as ___________?
Correct answer: D. static budget variance
- A. correspondent budget
- B. full budget variance
- C. methodology variance
- D. static budget variance
Explanation
Static budget variance is the difference between the actual result and the corresponding amount in the original static budget. It reflects the combined effect of actual activity and performance differing from the fixed plan.
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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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