A static budget is appropriate for
A) variable overhead costs.
B) direct materials costs.
C) fixed overhead costs.
D) none of these.

Question

Quizplus · Accepted Answer

A static budget is appropriate for fixed overhead costs because it is based on a predetermined level of activity and assumes that costs will remain constant regardless of changes in activity level. Variable overhead costs and direct materials costs are more appropriate for flexible budgets that adjust to changes in activity levels.

A Static Budget Is Appropriate for