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Management · Q321

Management Accounting

Graduate and Post Graduate · Management · question 321

Q321

If sales volume variance is 8500 and static budget amount is 2000, then flexible budget amount would be

A.
$6,500
Answer
B.
$6,600
C.
$6,700
D.
$6,800

Answer: Option A

Solution

Answer: Option A
Solution:
Flexible budget amount = Sales volume variance - Static budget amount
= 2000 = $6,500.
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