Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.

-The flexible budget will report ________ for the fixed costs.
A)$229,000
B)$225,000
C)$180,000
D)$286,250

Question

Answer the following questions using the information below:
The actual information pertains to the month of September. As part of the budgeting process, Kriger Fencing Company developed the following static budget for September. Kriger is in the process of preparing the flexible budget and understanding the results.
    
-The flexible budget will report ________ for the fixed costs.
A)$229,000 
B)$225,000 
C)$180,000 
D)$286,250

Quizplus · Accepted Answer

The fixed costs in the static budget are $225,000. The flexible budget will report the same amount for fixed costs because they do not change with the level of activity. Therefore, option B is the correct answer.

Answer the Following Questions Using the Information Below