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Commerce · Q506

Costing

Graduate and Post Graduate · Commerce · question 506

Q506

Sales budget variance is subtracted from flexible budget amount to calculate

A.
static budget amount
Answer
B.
unstated amount
C.
constant amount
D.
variable amount

Answer: Option A

Solution

Answer: Option A
Solution:
Sales budget variance is subtracted from flexible budget amount to calculate static budget amount. A static budget is a type of budget that incorporates anticipated values about inputs and outputs that are conceived before the period in question begins.