The static budget amount is subtracted from the actual result to calculate ______________?

Correct answer: C. static budget variance

  • A. static budget receipts
  • B. static budget deviation
  • C. static budget variance
  • D. multiple budget variance

Explanation

The difference between actual results and the static budget amount is the static budget variance. A flexible budget variance would compare actual results with a budget adjusted to the actual activity level.

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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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