The difference between the flexible budget amount and the corresponding static budget amount is classified as ___________?
Correct answer: D. sales volume variance
- A. sales revenue variance
- B. cost profit variance
- C. profit volume variance
- D. sales volume variance
Explanation
Holding the budgeted prices and costs constant, the difference caused by producing or selling a different volume is called sales volume variance. It compares the flexible budget with the static budget.
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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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