The flexible budget amount is $57000 and flexible budget variance is $14000, then actual result amount will be __________?
Correct answer: B. $71,000
- A. $61,000
- B. $71,000
- C. $43,000
- D. $24,000
Explanation
Adding the flexible budget variance to the flexible budget amount gives the actual result: $57,000 + $14,000 = $71,000. A subtraction would apply only if the variance were stated as favorable under a different sign convention.
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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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