A static budget is appropriate for
A) variable overhead costs.
B) direct materials costs.
C) fixed overhead costs.
D) None of these answers are correct.

Question

Quizplus · Accepted Answer

A static budget is appropriate for fixed overhead costs because these costs do not change with changes in the level of production or sales. Direct materials and variable overhead costs are influenced by changes in production or sales volume, so a flexible budget is more appropriate for these costs.

A Static Budget Is Appropriate for