Q510
Static budget amount is subtracted from flexible budget amount to calculate the
A.
sales budget variance
AnswerB.
cost budget variance
C.
resultant budget variance
D.
static budget variance
Answer: Option A
Solution
Answer: Option A
Solution:
Static budget amount is subtracted from flexible budget amount to calculate the sales budget variance. A sales budget is management's estimate of sales for a future financial period. A business uses sales budgets to set department goals, estimate earnings and forecast production requirements.