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Management · Q326

Management Accounting

Graduate and Post Graduate · Management · question 326

Q326

If flexible budget amount is 7500 and sales volume variance is 6500, then static budget amount would be

A.
$7,500
B.
$6,500
C.
$1,000
Answer
D.
$10,000

Answer: Option C

Solution

Answer: Option C
Solution:
Static budget amount = Flexible budget amount - Sales volume variance
= 6500 = $1,000.