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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Cost Accounting
941 free Cost Accounting MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Cost Accounting questions
If the static budget is $405000 and the flexible budget amount is $620000, then the sales budget variance will be ___________?
Number of units are multiplied to per unit price, to calculate ___________?
The budget which calculates the expected revenues and expected costs, based on the actual output quantity is named as __________?
The economic results that are predicted for possible combinations of events are classified as _______?
If the target net income is $36000 and the tax rate is 40%, then the target operating income will be __________?
If the sales quantity is 7000 units and the breakeven quantity is 1500 units, then the margin of safety would be __________?