Which of the following statements is true? Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.
Which of the following statements is true? Differences between the static planning budget and the flexible budget show what should have happened because the actual level of activity differed from what had been planned. An unfavorable activity variance for revenue indicates that activity was less than expected when the static planning budget was developed. The activity variance for revenue is favorable if the revenue in the flexible budget exceeds the revenue in the static planning budget.
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter7: The Master Budget And Flexible Budgeting
Section: Chapter Questions
Problem 20Q: In comparing actual sales revenue to flexible budget sales revenue, would it be possible to have a...
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